WHAT IS “INSURANCE”? LESSONS FROM THE CAPTIVE INSURANCE TAX CONTROVERSY

M. Moshe Porat and Michael Powers ()

Risk Management and Insurance Review, 1999, vol. 2, issue 2, 72-80

Abstract: Abstract: Over the past 30 years, the tax treatment of insurance premiums paid to captive (i.e., subsidiary) insurance companies has generated considerable controversy and litigation. In this article, we propose a new definition of insurance that is motivated by a careful analysis of the issues raised in the captive insurance tax controversy. Emphasizing the fundamental roles played by market forces and the efficiency of risk transfers, this new definition both broadens and refines traditional definitions of insurance.

Date: 1999
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https://doi.org/10.1111/j.1540-6296.1999.tb00053.x

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Persistent link: https://EconPapers.repec.org/RePEc:bla:rmgtin:v:2:y:1999:i:2:p:72-80

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