After 14 years of tenacious legal proceedings, RMC Group has emerged victorious in a landmark case in which the Internal Revenue Service (IRS) challenged RMC’s management of small captive insurance companies. In a jury verdict entered on April 4, 2024, the jury rejected the IRS’s claims that the captives managed by RMC were not real insurance companies.
Since the inception of this protracted legal dispute, RMC has steadfastly maintained the integrity and authenticity of its captive insurance practices. The government’s skepticism towards the status of the insurance entities under RMC’s management was met with unwavering resolve and a commitment to due diligence.
In a significant milestone for both RMC and the broader captive insurance industry, the jury’s decision establishes a precedent. RMC becomes the first captive manager to prevail against the IRS in court on this issue, marking a pivotal moment in the ongoing dialogue surrounding compliance in the management of captive insurance companies.
The jury’s verdict underscores RMC’s dedication to operating within the bounds of regulatory guidance and industry best practices. Despite the complexities and uncertainties surrounding captive insurance, the jury recognized RMC’s diligent efforts to navigate these challenges with the information and guidance available at the time.
“We are immensely gratified by the jury’s decision, which validates our longstanding commitment to ethical business practices and regulatory compliance,” stated Ray Ankner, President and CEO of RMC. “This victory not only vindicates our position but also reinforces the importance of clarity and collaboration in regulatory frameworks.”
RMC extends its profound gratitude to its legal team (Matthew Reddington and Janine M. Campanaro at Zerbe, Miller, Fingeret, Frank & Jadav, LLC) and supporters whose unwavering dedication and expertise were instrumental in securing this triumph. Moving forward, RMC remains steadfast in its mission to deliver innovative risk management solutions while upholding the highest standards of integrity and accountability.
For media inquiries or further information, please contact Ashley Simpson at [email protected] or 239-298-8210.
