insurance captives definition
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What is Captive Insurance? - What is a Captive Insurance Company ? A Captive Insurance Company is an insurance company that primarily insures the risks of businesses which are related to it through common ownership. For example, the owner or a group of businesses can form a wholly owned Captive Insurance Company for the purpose of insuring his related companies. The insured businesses pay premiums to the Captive in exchange for insurance. The Captive can be owned by the business owner, his spouse, his relatives, a Trust, or any of the companies he owns.
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- Admitted Insurance. DEFINITION of 'Admitted Insurance'. Insurance purchased from a company that is admitted (or licensed) in the state in which the policy was sold. Admitted insurance must also be sold by an agent who is licensed in that state. Next Up.
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Debt Securities Such is particularly the case with whole classes of new debt securities, debt instruments, ​and bond types. Catastrophe bonds are a new species of sovereign debt that act like debt securities until such time as a natural disaster strikes, then they essentially morph into casualty insurance policies that, in effect, pay the issuer. More.
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Captive Agents versus Non-Captive Agents: Finding Your Niche Non-Captive Agents. In direct opposition to captive agents, non-captive, or independent agents, represent multiple insurance companies and work on behalf of the client to find them a policy.
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insurance (ɪnˈʃʊərəns; -ˈʃɔː-) n. 1. (Insurance) a. the act, system, or business of providing financial protection for property, life, health, etc, against specified contingencies, such as death, loss, or damage, and involving payment of regular premiums in return for a policy guaranteeing such protection. b. the state of having such protection.
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Insurance Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for money. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Reinsurance is a type of insurance purchased by insurance companies or self-insured employers to protect against unexpected losses. 2  Financial reinsurance is a form of reinsurance that is primarily used for capital management rather than to transfer insurance risk.
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- Welcome to the Derby Chamber of Commerce! The voice of Derby Businesses since 1957, the Derby Chamber of Commerce offers a community where members can increase visibility and create networking opportunities within the comforts of home.
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Talk:Reinsurance Reinsurance is the means by which an insurance company (called the reinsured, ceding company or cedant) shares the risk of loss with another insurance company (called the reinsurer).
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- casualty insurance - Insurance that is primarily concerned with the losses caused by injuries to persons and legal liability imposed on the insured for such injury or for damage to property of others.
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- Two terms that are well understood in insurance circles are (1) mortgagee provision and (2) loss payee or loss payable provision. The first term is used with reference to real estate property and is a necessary provision when a financial institution lends money to the purchaser of real estate.
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Bond insurance Bond insurance. Bond insurance (also known as financial guaranty insurance) is a type of insurance whereby an insurance company guarantees scheduled payments of interest and principal on a bond or other security in the event of a payment default by the issuer of the bond or security.
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What is Captive Insurance A captive insurance company is a form of self-insurance organized for the primary purpose of providing insurance protection to its owners and/or related entities.
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- The SPC has obvious practical application to the captive insurance and reinsurance industries as it allows insured persons to better assess and handle the risks of the insurer by focusing only on the sufficiency of reserves of the relevant segregated
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Insurance Policies on Slaves: New York Lifeâs Complicated Past Insurance Policies on Slaves: New York Life’s Complicated Past. In its 19th-century beginnings, New York Life Insurance sold 508 policies covering slaves. Their descendants are grappling with it. New York Life, the nation’s third-largest life insurance company, opened in Manhattan’s financial district in the spring of 1845.
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- GLOSSARY OF INSURANCE TERMS ~ O ~ P. O. Obligee: The party in whose favor a bond runs, such as the party protected from loss under the bond. Obligor: One bound by the obligation covered by a bond. Also called the principal. Occurrence: 1) in a non-insurance sense, an incident, event or happening.
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What is 'Reinsurance' What is 'Reinsurance'. Reinsurance, also known as insurance for insurers or stop-loss insurance, is the practice of insurers transferring portions of risk portfolios to other parties by some form of agreement to reduce the likelihood of having to pay a large obligation resulting from an insurance claim.
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- Definition of 'Reinsurance'. Definition: It is a process whereby one entity (the reinsurer) takes on all or part of the risk covered under a policy issued by an insurance company in consideration of a premium payment. In other words, it is a form of an insurance cover for insurance companies.
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Definition For a personalized walk-through of IRMI Online, Request a Demo. protection and indemnity (P&I) insurance. Liability insurance for practically all maritime liability risks associated with the operation of a vessel, other than that covered under a workers compensation policy and under the collision clause in a hull policy.
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What Is a Fronting Arrangement, and Why Do Captives Use Them? The risk of loss is retained by the self-insured or captive insurer through an indemnity or reinsurance agreement. However, the fronting company (insurer) would be required to honor the obligations imposed by the policy if the self-insurer or captive failed to indemnify it.
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- Loading the player... Reinsurance, also known as insurance for insurers or stop-loss insurance, is the practice of insurers transferring portions of risk portfolios to other parties by some form of agreement to reduce the likelihood of having to pay a large obligation resulting from an insurance claim.
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Utilizing the Profits from Your Captive Insurance Company to Fund the Pension of Your Corporation's Pension Plan Corporations that own Captive Insurance Companies in Vermont, as an example, Chevron Corporation owns the Iron Horse Insurance Co., and in Bermuda, Chevron Corporation owns the Heddington Insurance Limited and Insco Limited must increase their insurance company operating profits.
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- indemnity reinsurance. An agreement between two or more insurance companies under which the reinsuring companies agree to accept and to indemnify the issuing company for all or part of the risk of loss under policies specified in the agreement.The ceding company retains its liability to and its contractual relationship with the insured.dministration of the claim is retained by the ceding company. An agreement between two or more insurance companies under which the reinsuring companies agree to accept and to indemnify the issuing company for all or part of the risk of loss under policies specified in the agreement.
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- reinsurance in Insurance (riɪnʃʊərəns) or reassurance. Reinsurance is insurance protection taken out by an insurer to limit its exposure to losses on an original insurance contract. A property insurer may not be able to buy reinsurance to protect its own bottom line unless it keeps its potential maximum losses under a certain level.
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- What is EXCESS OF LOSS (XOL) AGREEMENT? A REINSURANCE arrangement where a REINSURER assumes RISKS and returns in specific horizontal or vertical layers; depending on the magnitude of losses and the sequence and level of ATTACHMENT a reinsurer may or may not face some CESSION and allocation of losses on each loss event. See also PROPORTIONAL AGREEMENT, QUOTA SHARE, SURPLUS SHARE.
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- Credit Default Insurance. The use of a financial agreement - usually a credit derivative such as a credit default swap, total return swap, or credit linked note - to mitigate the risk of loss from default by a borrower or bond issuer.
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What is 'Alien Insurer' DEFINITION of 'Alien Insurer'. An insurer that is formed following the laws of one country and offers insurance or reinsurance in another country. For example, an insurer that is formed under the laws of Germany that wishes to offer insurance in the United States is an alien insurer. The company would have to conform to the rules and regulations of each state in which it plans to provide insurance services.