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TYPES OF
CAPTIVES/RRG A Single Parent Captive is a captive
insurer owned by one company.
Conversely, a captive owned jointly by two or more companies is a
multiple-owned, group or association captive.
There are several different types of multiple-owned captives. An Association Captive Insurance Company
is one established by members of an association. Another type is a Group Captive Insurance
Company, established and owned by a group of companies engaged in
similar (homogenous) or dissimilar (heterogeneous) businesses to underwrite
their own collective risks. A Risk Retention Group (RRG) is a group self-insurance program formed under provisions of the
Liability Risk Retention Act of 1986, by or on behalf of separate business
owners that have joined together to insure their liability insurance
exposures. Such a group is exempt from
most state laws, rules or regulations, except for the stat in which it is
domiciled. Government Pools are another
specialized group Captive type.
Rent-a-Captives are another form of sponsored captive insurance. By utilizing an established captive, and in
exchange for a fee, many different insured's can benefit from the financial
advantages of a captive without the related costs and procedures of setting
up an entirely new one. Protected Cell Companies’ status allows a
captive to segregate accounts so that each account is legally protected from
the liabilities of other accounts within the captive insurer. CLICK TO: |
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◘
Understanding Rent-a-Captive/RRG |
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F.
Darrell Lindsey State
Approved Captive/RRG Manager |
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BACK – USE ARROW TO PRINT USE PRINT PREVIEW |
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