CIC Services Sales Brochure 2025

Own Your Own Insurance Company

Table of Contents

Turning Risk Into Wealth................................................... 1

How a Captive Insurance Company Works............... 2

Why Captive Insurance is More Critical Than Ever.................................................. 3-4

Fact Sheet............................................................................... 5-6

Industries We Serve.............................................................. 7

David vs Goliath: The CIC Services Supreme Court Victory Over the IRS............................ 8

Company Accolades.............................................................. 9

CIC Services Experts..................................................... 10-17

CIC Services in the News........................................... 18-19

Turning Risk Into Wealth

CIC Services, LLC is a national risk management consulting firm, specializing in the utilization of captive insurance companies (CICs) to help organizations achieve their overall enterprise risk management goals. We have been helping business owners manage risk through CIC ownership since 2005 by providing superior expertise, and full-service, turn-key captive management services. Our principals have more than a century of combined experience in the insurance industry.

We understand the unique needs, goals, and fears of business owners.

We have built our business by serving these entrepreneurs through the innovative use of captive insurance companies tailored to meet their individual needs and to help them achieve their goals and dreams.

company insures itself through its own insurance company, referred to as captive insurance, you get to keep the prot and accumulate wealth. Here’s how.

No matter what industry you’re in, you likely pay for insurance. How a Captive Insurance Company Works

There’s a reason why 90% of Fortune 1000 companies utilize captive insurance.

Captive insurance companies provide combined insurance and tax savings of 15-50% .

Anatomy of a Captive

Insurance When you own a captive insurance company, the premiums are paid to you—you keep the prot after claims are paid out. For example, you receive $2 million in premiums, pay $100k in operations and pay $50k in claims , then you have $1.85 million in underwriting prot.

Recieve $2 Million (Premiums)

Pay $100k (Operations)

Pay $50k (Claims)

Profit $1.85 million

Insurance

Tax Rate 0%*

Taxes Underwriting prots are deferred due to loss reserving or taxed at 0% in some cases.

Loss Reserves Remaining $1.85 million

Investment Income

Investment Income The captive is able to invest a larger amount due to tax-favored treatment.

$92,500

As an example, after one year, at 5% interest, you’ve earned $92,500 .

Wealth Accumulated

Wealth Accumulation Using the same example, $1.94 million loss reserves in accumulated wealth.

$1.94 million

In short, a captive can do the following: Manage risks Help control insurance costs Improve asset protection

Improve company’s bottom line Create profit center Accumulate wealth

2 Ready to get started?

Why Captive Insurance is More Critical Than Ever

Captive ownership continues to rise. According to Aon’s 2023 Global Risk Management Survey, 25% of respondents currently use a captive, up from 17% in 2021, with an additional 6% planning to establish one in the next three years. At CIC Services, we’ve experienced this growth firsthand as clients increasingly turn to this risk management tool to manage risks in ever-complex and evolving market conditions. The past few years have underscored that the unexpected can and will happen—whether it’s a natural disaster, a supply chain disruption, or other unforeseen events that impact businesses worldwide. For example: • Natural Disasters and Power Outages: In late September 2024, Hurricane Helene, a Category 4 storm, struck the southeastern U.S., causing nearly 4 million power outages and significant damage. Such widespread impacts demonstrate the growing need for businesses to manage risks associated with extreme weather events effectively. (Campus Safety Magazine) • Supply Chain Disruptions: In 2024, global supply chains faced significant challenges, including disruptions at critical trade corridors like the Panama and Suez Canals. These disruptions highlighted the fragility of global trade and emphasized the importance of contingency planning for businesses reliant on international logistics. (The WallStreet Journal)

These incidents are difficult to predict and insure against, making captive insurance, with its ability to write broad coverage and fill gaps, a valuable tool.

When developing a robust risk management strategy, there are several reasons why business-minded audiences should know more about captive insurance: • Manufacturing Industry Outlook: Deloitte’s 2025 Manufacturing Industry Outlook highlights ongoing risks such as labor shortages and supply chain instability as leaders fend off disruption. (Deloitte) • Natural Disasters and Weather Events: Recent years have been among the costliest for natural disasters, and most scientists agree we’ll see more in the coming years. Captives can provide tailored coverage for such events, offering businesses a customized risk management solution.

Why Captive Insurance is More Critical Than Ever

• Technological Advancements: While innovation has accelerated technology, it introduces new risks. The adoption of artificial intelligence and robotics opens businesses to potential product liability claims and manufacturing defects. Captives can offer coverage for these emerging risks, providing a safety net for technological-related liabilities. • Cybersecurity Threats: Cyber-attacks have been on the rise, with significant increases in recent years. Captives have become a profitable line of coverage for cyber risks, offering businesses a way to manage exposures such as ransomware, phishing, data breaches, or credential theft. • Health Insurance Premiums on the Rise: According to Swiss Re’s 2025 Global Economic and Insurance Market Outlook, health insurance premiums are projected to grow by 4.2% annually, driven by increased claims activity and inflationary pressure. For employers offering employer-based health care, premiums are expected to rise by 7% in 2025, based on an annual report from PricewaterhouseCoopers. This trend highlights the importance of leveraging captives to control rising costs and ensure sustainable coverage. The past few years have been tumultuous for the marketplace, and 2025 is shaping up to be no different. As inflation persists, consumer confidence is expected to fluctuate. With businesses now understanding the potential for unpredictable events that are widespread and severe, risk management is all the more critical. For businesses with captive insurance companies, or those considering it, keeping an eye on industry trends can help define how captives are best utilized—not only to mitigate risk but to control costs and ultimately boost profit.

Fact Sheet

Captive insurance enables businesses to take more control over their risk management by owning their own insurance company. It is a cost-effective form of self insurance. Captives are real insurance companies and businesses can utilize them to replace some or all of their commercial insurance, insure enterprise risks, provide warranties and issue bonds.

What are the benefits of a captive insurance company? Improve risk management

Reduce net insurance premiums Reap gains in insurance profits Smooth rate increases Accumulate wealth Enjoy potential advantageous tax treatment Gain access to reinsurance markets Insure non-standard risks Employ customized insurance programs

How do captive insurance companies reduce costs and improve risk management?

Captive insurance eliminates a large protion of the administrative costs companies often pay through commercial insurance. Captives also generate investment income from unearned premiums and loss reserves. They also enable a

Can you form your own captive insurance company?

The rst step is to enlist an experienced captive manager that can guide you through the assessment and captive formation process.

The CIC difference

Why choose CIC Services for captive insurance management? CIC Services, LLC (CICS) is a boutique risk management consulting rm, specializing in assisting successful organizations form and operate their own captive insurance companies, empowering organizations to achieve their overall enterprise risk management goals. CICS offers superior expertise and full-service, turn-key insurance management services. CICS’s principals have over a century of combined

CICS ensures that the captives it manages are on sound footing and in good standing throughout the entirety of their lifetimes. Captive insurance companies operate at the intersection of asset management, regulatory compliance and tax law, and CICS possesses particular expertise in managing this mix while providing clients with superior customer service and peace of mind throughout the process.

experience in the insurance industry and have completed the formation of 100+ insurance companies. CICS takes the unique complexities of insurance companies and simplies them for the needs of clients. By “lifting the veil” on the insurance industry, CICS enables clients to participate in revenue and prot in a manner that has been previously exclusive to the Fortune 500.

Industries We Serve

CONSTRUCTION MANUFACTURING

HEALTHCARE

TRANSPORTATION/ LOGISTICS

IT/COMMUNICATIONS

RETAIL

WHOLESALERS

David vs Goliath: The CIC Services Supreme Court Victory Over the IRS

In a David vs. Goliath win, the Supreme Court of the United States granted CIC Services LLC a significant victory for taxpayers and their advisors. In a unanimous opinion written by Justice Kagan, CIC Services, LLC v. Internal Revenue Service et al, the Supreme Court held that certain taxpayers and their advisors may sue the IRS to set aside or invalidate illegally issued IRS regulations and notices, at least when the legality of the regulation or notice, rather than taxes, is the only issue in dispute. The case involved a notice issued by the IRS in November 2016 requiring all every taxpayer and their material advisors who engaged in certain captive insurance transactions to make certain informational disclosures to the IRS and maintain certain additional books and records concerning the transactions. Noncompliance could result in onerous fines and imprisonment up to one year. CIC Services LLC contended that the notice was issued illegally, pointing out among other things that the agency issued the notice without first allowing for public comments as required by the Administrative Procedure Act (APA). The IRS contended that it was immune from the lawsuit due to the Anti-Injunction Act (AIA), a Civil War era law that requires taxpayers to first pay any disputed tax before suing the IRS. In a unanimous opinion authored by Justice Elena Kagan, the Supreme Court held that such lawsuits against the IRS can proceed despite the provisions of the AIA when the lawsuit isn’t a dispute over taxes but instead merely contests the legality of the IRS’s rule making. “For too long the IRS has behaved as if it was exempt from the basic rules of lawmaking that govern federal administrative agencies, as if the AIA gave it carte blanche to make and enforce laws by fiat without following due process,” said Sean King, General Counsel for CIC Services. “Our 9-0 victory proved them wrong.” After the ruling by the Supreme Court, the case was remanded back to Federal District Court. That court has since issued an injunction forbidding the IRS from enforcing Notice 2016-66 against CIC Services pending ultimate resolution of its case. The court noted that the injunction against the IRS was justified in part because CIC Services is suffering irreparable harm by virtue of the Notice and is likely to win its case on the merits. A decision on the merits is expected any day. In the meantime CIC Services expects other material advisors, and perhaps even taxpayers, to petition other courts for similar relief from the notice.

Company Accolades

1. ICCE Trained Organization

2. Member of the Captive Insurance Companies Association

3. Risk and Insurance Management Society (RIMS) member

4. Self-Insurance Institute of America (SIIA) member

5. Approved continuing professional education (CPE) provider for CPAs by NCCIA

6. 2021, 2023, and 2024 Captive Manager of the Year Winner - US Captive Review

7. Serving businesses for over 16 years

8. Has enabled over 125 business to form captive insurance companies

CIC Services Experts

Christopher Gallo Managing Partner

Christopher Gallo spent his career in risk management as a regulator with the Connecticut Insurance Department. He has taken the lessons learned from over three decades to apply them to improving risk mitigating strategies for businesses. Chris graduated from Central Connecticut State University with a Bachelor of Science degree in Administrative Science and obtained his Certified Financial Designation from the Society of Financial Examiners. After retiring from his regulatory career, he joined CIC Services in 2020, and consults directly with business owners, CEOs and CFOs in the formation, and as regulatory liaison, of captive insurance programs for their respective businesses. CIC Services, LLC manages over 100 captives.

Noah Miller Risk Management Consultant

Noah is a Risk Management Consultant with CIC Services, where he helps successful business owners create their own captive insurance companies to protect their business. During Noah’s tenure with CIC Services, he earned his Associates in Captive Insurance (ACI) designation from the International Center for Captive Insurance Education (ICCIE). Noah has also co-authored a book pertaining to captive insurance: ‘Fortune Favors the Insured; The Definitive Guide to Captive Insurance for Middle Market Companies. Prior to CIC Services, Noah worked as a Medicare and Life Insurance Agent. Noah holds Life and Health insurance licenses in the state of Iowa. Noah received a Bachelor of Science Degree in Business Management and Marketing graduating Magna Cum Laude from Taylor University in 2020.

Sean King, JD, CPA, MACC, Founding Pricipal, In House Council

Sean King is a principal and one of the founders of CIC Services, where he serves as in-house Counsel. With a background in accounting, law, taxation and insurance, King is uniquely qualified to work in the captive insurance industry. He co-founded CIC Services in 2005 and specializes in creatively structuring captives to assist clients in achieving their risk management, asset protection, and wealth accumulation. In 2015, King served on the Captive Insurance Companies Association (CICA) committee that developed CICA’s formal Information Statement On Small Captive Insurance Companies. He has also been a panel speaker on captive insurance companies with CICA and at continuing professional education conferences of the Estate and Trust Section of the American Bar Association.

Sean received his Bachelor of Science degree in Business Administration, Cum Laude, from the University of Tennessee (UT). He also earned his master’s degree in accounting with a concentration in Taxation, as well as his Doctor of Jurisprudence (law) degree from UT. Sean holds active licenses as a CPA and attorney.

Randy Sadler CMO

Randy Sadler started his career in risk management as an officer in the U.S. Army, where he was responsible for the training and safety of hundreds of soldiers and over 150 wheeled and tracked vehicles. He graduated from the U.S. Military Academy at West Point with a Bachelor of Science degree in International and Strategic History with a focus on U.S. – Chinese Relations in the 20th century. He has been a Principal with CIC Services, LLC for 7 years and consults directly with business owners, CEOs and CFOs in the formation of captive insurance programs for their respective businesses. CIC Services, LLC manages over 100 captives.

Thomas N. King Founding Principal, Business Development Thomas N. King (Tom) is a Founding Principal for CIC Services, LLC, in Knoxville, TN. Tom’s career as an advanced financial professional began in 1970. He helps clients design ownership in a Captive Insurance Company so they can better achieve risk management and asset protection goals. Over his career, Tom has become known in his profession for his dedication and exceptional ability to find the very best financial solutions for clients. Moreover, his solutions provide clients the ability to spend more of their wealth throughout their lives, achieve their wants and dreams, yet preserving significant wealth in their estates. And, most importantly, his goal is to achieve these results with no

additional net out of pocket costs to clients.

For almost 30 years Tom served as the head of one of the largest Financial Services Firms in East Tennessee, as General Agent for MassMutual Financial Group and Mutual Benefit Financial Group. He has been an Elder in the Presbyterian Church USA since 1978, is a member of Fox Den Country Club and is a member of several professional organizations. Since 1969 he has been married to his high school Sweetheart, Laura Jo Nelson King and is the father of Sean G. King, JD, CPA, MAcc and Rachel Renee King Green.

Bill Rogers, Chartered Financial Consultant, CLU, Principal William J. Rogers II (Bill) graduated from the University of South Carolina-Columbia with a Bachelor of Science Degree in Business Administration in 1976. Shortly thereafter he began his financial services career as an agent with MassMutual. Just a few years later he earned his CLU and Chartered Financial Consultant designations from the American College in Bryn Mawr, PA. In the year 2020, William J. Rogers II (Bill) took advantage of an opportunity to be a part of the firm his friend of over thirty years, Tom King, CLU, began with his son, Sean King, JD, CPA, MAcc, in 2005, CIC Services, LLC.

Tom and Bill served — concurrently — as agency heads in separate cities, Knoxville and Atlanta, for one of the nation’s top financial services firms, MassMutual, and the two were participants in a “performance group” with eight other MassMutual leaders during that time. During his tenure, Bill also served as a senior officer for the company in the capacity of Director of Agencies for the Central Region of the US. Since his years with MassMutual Bill has been a private investor with concentrations in small public companies and real estate. He also has quite a fondness for making furniture from exotic species of wood from around the globe and turned this hobby into a business, Live Edge Exotics, several years back. With over forty years of experience helping business owners and professionals, leading high achievers, and running his own businesses, Bill readily exclaims that he is delighted to join such a rare group of top professionals with towering levels of business acumen, very high integrity, and many, many years of helping others. His roots run deep as he is an eleventh-generation South Carolinian. Bill is a resident of Charleston, SC with his wife of nearly 30 years, Debbie. The couple has two children, Joe, and Caroline, whom they love to spend time with as often as possible.

Shawn Holland Principal

Shawn has been in the financial or insurance business for most of his career with a combined 25 years of experience in these fields. He was one of the founding members of CIC Services and was instrumental in opening up the Southeast to the Captive Insurance Company concept along with CIC’s partners. Shawn first worked for the company in Atlanta and then moved to Charleston, SC with his family 13 years ago to enjoy the coast and everything it had to offer. Between his time with CIC Services,

Shawn founded a beverage company, a wine company, a brand management company and a vitamin/supplement company, further solidifying his knowledge of the capital markets, the trials and tribulations of entrepreneurship, risk management, and how business owners really think. Shawn is tremendously excited to be back on the CIC Services team to assist in the company’s tremendous growth in the Southeast. Shawn lives with his wife of 25 years, Jennifer, on Sullivan’s Island, SC, near Charleston. He has two children ages 22 and 18, both of whom are Wake Forest Demon Deacons. Shawn is an active member of Seacoast Church, and enjoys music, movies, golf and tennis. He still plays competitive tennis at the national level and was a four-time All American at Presbyterian College.

Tim Welles Business Development

Tim’s 26-year financial services career began in 1989 as the Director of Risk Management for Pi Kappa Phi Fraternity where he oversaw the risk management and insurance programs for the fraternity’s four entities and 130 undergraduate chapters. Early in his career as a financial services consultant Tim earned his CFP (Certified Financial Planner) designation and held the series 7 and 63 licenses. Tim has practiced as a financial consultant in the areas of employee benefits, investments, life insurance and qualified, and non-qualified retirement plans. In 2000, Tim co-founded, and was a principal, at Benefits Management Group, Inc. Much of Tim’s work during the course of his 25-year career has been

with owners of privately-held companies.

Tim served as the Chapter Advisor of the Alpha Sigma Chapter (University of Tennessee) of Pi Kappa Phi for many years and is currently a member of the chapter’s housing corporation board. Tim has been a member of Cedar Springs Presbyterian Church in Knoxville, TN for approximately 20 years.

A native of Buffalo, New York, Tim received his BBA in Finance from the University of Oklahoma.

Tim, his wife of 24 years, and their children reside in Farragut, Tennessee.

Michael Shuya Director of Sales Operations

Michael serves as Director of Sales Operations for CIC Services, where he assists the sales team, financial modeling, marketing, and sales operational management. He previously worked in the finance industry handling life insurance and investment account operations, sales, and recruiting. Michael received his Bachelor of Arts in Political Science from Indiana University in 2016, and he is currently attending Butler University for his Master of Business Administration.

Michael can be found coaching soccer, playing golf, snowboarding, and cheering on the Chicago Blackhawks or

the Indianapolis Colts. He currently resides in Knoxville, Tennessee.

Ram Patel Principal, CIO

Ram serves as Chief Investment Officer for CIC Services, where he helps with compliance, financial modeling, operational support, and advanced financial strategies for the Captives. He has spent his whole life in the hotel industry while also having a background in Supply Chain Management and Insurance. He also holds a Life license active in TN. Ram is a very adventurous person and likes to learn about new industries and concepts. He is still very involved in the hotel industry and is part of several major hotel associations. Ram received his Bachelor of Science in Supply Chain Management from the University of Tennessee in 2015.

Ashton King Risk Management Consultant

Ashton serves as a risk management consultant for CIC Services, where he helps businesses manage their own captive insurance company. Ashton comes to CIC Services looking to learn more about captive insurance and expand his knowledge in the insurance industry. Prior to joining CIC Services, Ashton graduated from East Tennessee State University, where he majored in sports management and played baseball there for 5 years. Ashton also earned a certificate in Athletic administration during his tenure at East Tennessee State University, where he graduated in 2024. Outside of work, Ashton enjoys playing golf and spending time with family and friends. He currently resides in Knoxville, Tennessee where he was born and raised.

CIC Services in the News

www.cicservicesllc.com 865-248-3044 9721 Cogdill Dr. • Suite 202 Knoxville, TN 37931

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