14:06
hi everyone! I've been in DC for the past days. Anybody else get a WashU interview?
Warning
Info
LSDefine
Simple English definitions for legal terms
captive insurance company
Read a random definition: Mixed-Motive Instruction
A quick definition of captive insurance company:
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 more thorough explanation:
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.
- ABC Corporation creates a captive insurance company to insure its own risks, such as product liability and property damage. The captive insurance company is owned by ABC Corporation and provides insurance coverage exclusively for ABC Corporation.
- XYZ Corporation sets up a captive insurance company to insure the risks of its subsidiaries. The captive insurance company is owned by XYZ Corporation and provides insurance coverage only for its subsidiaries.
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.