How will an offshore policy provide greater asset protection than a domestic policy?
Under Cayman Islands law, the assets of each policyholder are placed in a separate “segregated account”. In the event of the insolvency or bankruptcy of the insurance carrier, or any other policyholder, the segregated accounts are not subject to the claims of creditors and a policyholder (or the insured) is not subject to claims of creditors. A U.S. person who purchases a policy issued by a domestic carrier receives only the protection by state law (of his or her residence) against claims of creditors. Most U.S. states provide little protection. The Cayman Islands, The Companies Law (2007 Revision), allows certain insurance carriers to be registered as an “exempted segregated portfolio company”. Bastion is formed as a segregated portfolio company and the legislation provides that the segregated accounts formed to fund an insurance policy are available solely to satisfy the insurance company’s obligations to the owner of the policies. In addition, the legislation provides the assets in
