831(b) captive

{
  "id": "MLC-T-INS-000276",
  "term": "831(b) captive",
  "field": "Insurance and risk management",
  "definition": "A small insurance company that qualifies for a special tax election under Section 831(b) of the U.S. Internal Revenue Code. To qualify, the captive's annual written premiums must not exceed a specific inflation-adjusted limit. Under this election, the captive is taxed only on its net investment income, not on its underwriting profit, provided it meets the premium threshold set for the tax year.",
  "url": "https://mlchart.com/terminology/insurance/831-b-captive/"
}