Page 38 - HealthStream
P. 38
Captive overview
Single-parent/wholly owned captive
Captive reinsurance
• Under the captive reinsurance structure, 100% of the risk is transferred to an admitted or A-rated carrier, which, in turn, reinsures all or a portion of the
risk to the captive. The captive serves as a reinsurer to the fronting carrier for all or a portion of the risk. The captive policy is between the fronting carrier
and the captive.
CAPTIVE — FRONTED REINSURANCE
Ground-up/full-limit Reinsures insurer for
policy retention obligations
COMMERCIAL
INSURED CAPTIVE
Premium INSURER Cedes % of premium to cover
losses within retention
HealthStream — Lockton Employee Beneits Practice Overview 38 Lockton Companies
Single-parent/wholly owned captive
Captive reinsurance
• Under the captive reinsurance structure, 100% of the risk is transferred to an admitted or A-rated carrier, which, in turn, reinsures all or a portion of the
risk to the captive. The captive serves as a reinsurer to the fronting carrier for all or a portion of the risk. The captive policy is between the fronting carrier
and the captive.
CAPTIVE — FRONTED REINSURANCE
Ground-up/full-limit Reinsures insurer for
policy retention obligations
COMMERCIAL
INSURED CAPTIVE
Premium INSURER Cedes % of premium to cover
losses within retention
HealthStream — Lockton Employee Beneits Practice Overview 38 Lockton Companies
