In conjunction with the United States Government and various domiciles, The IRS has established the rules, regulations and procedures for establishing and operating legitimate Captive Insurance Companies. Violating the IRS Rules will eventually destroy the mission that was created when the Captives are established. My most used Captive Insurance phrase is, “don’t get cute”. Another is “Stay in the box” as defined by the IRS and the respective domiciled Insurance Authority. In North Carolina, The Department of Insurance has established a select team that manages the Captive Insurance Companies that are domiciled in North Carolina. They are extremely helpful and will assist to establish and operate these captives.