Page 34 - Walden Security
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Captive Overview
Single-parent/wholly owned captive
Insuring direct CAPTIVE — INSURING DIRECT
• Most companies form a captive to inance risk already retained within
the organization. Retained risk within an organization can be either Policy premium
exposures for which the company has decided to not purchase insurance INSURED COMMERCIAL
INSURER
and purely self insure or parental-loss obligations within deductible/SIR Policy with deductible
endorsement
policies purchased from the traditional marketplace.
• A traditional captive arrangement is one in which a company sets up its Captive premium Reimburses for
own insurance company to insure the risk under its deductible policies to fund for losses losses paid within
within deductible
deductible
with a traditional insurer. The captive issues a direct policy to the parent
to reimburse the parent for the risk under its deductibles/SIR.
CAPTIVE
Walden Security — Lockton Employee Beneits Practice Overview 34 Lockton Companies
Single-parent/wholly owned captive
Insuring direct CAPTIVE — INSURING DIRECT
• Most companies form a captive to inance risk already retained within
the organization. Retained risk within an organization can be either Policy premium
exposures for which the company has decided to not purchase insurance INSURED COMMERCIAL
INSURER
and purely self insure or parental-loss obligations within deductible/SIR Policy with deductible
endorsement
policies purchased from the traditional marketplace.
• A traditional captive arrangement is one in which a company sets up its Captive premium Reimburses for
own insurance company to insure the risk under its deductible policies to fund for losses losses paid within
within deductible
deductible
with a traditional insurer. The captive issues a direct policy to the parent
to reimburse the parent for the risk under its deductibles/SIR.
CAPTIVE
Walden Security — Lockton Employee Beneits Practice Overview 34 Lockton Companies
