Simple English definitions for legal terms
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A captive insurance company is a type of insurance company that insures the liabilities of its owner. This means that the owner of the company is also the only customer and shareholder. It is also known as a captive insurer. The purpose of a captive insurance company is to provide insurance coverage for the risks of its owner, rather than selling insurance policies to the general public.
A captive insurance company is a type of insurance company that insures the liabilities of its owner. The owner is usually the only customer and sole shareholder of the company. This means that the company is created to provide insurance coverage for its owner's risks.
These examples illustrate how a captive insurance company is created to provide insurance coverage for a specific entity or group of entities. The captive insurance company is owned and controlled by the insured, which allows for greater control over the insurance coverage and potentially lower costs.