Captive Insurance Law and Legal Definition
Captive insurance refers to insurance that provides coverage for the group that established business. It is a type of insurance that provides to its parent company. Captive insurance company is a corporation whose stock is owned by one or a small number of companies and which handles all or a part of the insurance needs of its shareholders or their affiliates. Generally, under captive insurance, the parent company can deduct the premiums set aside as loss reserves. Captive insurance draws a dichotomy between true insurance and arrangements which have been found to constitute, in substance, self-insurance.
Legal Definition list
Related Legal Terms
- Accelerated Life Insurance Benefits
- Accident Insurance
- Accidental Death and Dismemberment [Insurance]
- Accommodation Line [Insurance]
- Accountants Professional Liability Insurance
- Accounts Receivable Insurance
- Actual Cash Value Insurance
- Actual Delivery of Insurance Policy
- Actuarial Documents [Federal Crop Insurance Corporation]
- Actuarially Appropriate [Federal Crop Insurance Corporation]
