Apr 10, 2015
Since Non-Controlled Foreign Corporations are prohibited from conducting trade or business in the U.S. they are not permitted to advertise or solicit business in the U.S., nor are they able to have a U.S. Branch operation. It does not however, restrict them from insuring U.S. exposures either as direct placement on a non-admitted basis or through reinsurance with an admitted fronting carrier. In order to access a NCFC rent-a-captive you must independently procure their services by contacting them outside of the U.S. This can be achieved simply by a phone call or email expressing interest. Once you have made the initial contact, the NCFC may then communicate with you to explain their facility, work with you on a feasibility study and provide quotations. The challenge is knowing what options are available and who to contact. Of course the internet is a good tool as well as independent risk management consultants, who can at your request provide you with a list of offshore contacts who can work with you to overcome this barrier and open up direct communications. Although NCFCs can be domiciled anywhere outside of the U.S., one of the best known and well respected domiciles of choice is Grand Cayman, which offers a tax free corporate environment and has in place the infrastructure, expertise and legislation necessary for a successful alternative risk management solution to your insurance needs.