Glossary

A capital stock company is an insurance company owned by stockholders rather than by its policyholders.

Capital structure is the determination of the optimal mix of capital by type (i.e., debt, common equity, preferred equity) given the risk profile and performance objectives of the enterprise.

Capital sum is the maximum amount payable in one sum in the event of accidental death or dismemberment.

Capitated fee is a method of compensating medical providers based on the number of patients treated rather than the amount of service provided.

The captain of the ship doctrine is often used in operating room situations whereby a physician can be held liable for the actions of subordinates (i.e., nurses), based on the doctor's functioning as "the captain of the ship," because the physician controls and directs the actions of those in assistance.

A captive is an insurance company that has as its primary purpose the financing of the risks of its owners or participants.

Captive agents are employees of the insurer who work exclusively for that insurer.

A captive facility is an insurance or reinsurance company, licensed under either commercial or captive insurance laws, used to provide captive insurance to insureds that may share in the facility's ownership or have no ownership position.

The Captive Insurance Companies Association (CICA) is an association of risk managers formed to educate, inform, support, and provide valuable networking opportunities to members and interested parties about captives, regardless of domicile or structure.

A captive management company is a firm specializing in accounting and other services for captive insurance companies, usually serving as the captive's principal representative in the domicile.