captive
An insurance company that has as its primary purpose the financing of the
risks of its owners or participants. Typically licensed under special purpose
insurer laws and operated under a different regulatory system than commercial
insurers. The intention of such special purpose licensing laws and regulations
is that the captive provides insurance to sophisticated insureds that require
less policyholder protection than the general public.
Links for IRMI Online Subscribers Only:
IWC XI.T;
RF IV.H,
IV.I