TYPES OF CAPTIVE INSURANCE COMPANIES

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Pure Captives are established to insure the needs of its parent company or its brother and sister companies that are owned by the same parent company that owns the Captive.

Cell Captives are established as a sub-part of a larger Sponsor Captive also known as the core.  Cell Captives can be used by a business just starting out in the captive field that is looking to “dip its toe in the water” of self-insurance, smaller businesses where aggregate premium dollars may not warrant the establishment of a Pure Captive, and larger businesses that wish to establish a separate Cell Captive for its different lines of business or subsidiaries.

Association Captives or Group Captives are established by trade associations, civic groups or other types of 

organizations, like homeowners’ associations, that are looking to provide a self-insurance ability to its members.

A Branch Captive is a Captive Insurance Company 

established and licensed as a local branch in one state, of a larger Captive that is established and licensed in a different state or country.

A Risk Retention Group is a Captive established under 

the federal Liability Risk Retention Act and is regulated by federal law.  It does not require licensing by any specific state and can write insurance in every state.

SPFC’s are established to securitize 

insurance risks.