Captive Insurance Company
A captive insurance company is an insurance company that has been set up to provide coverage at a lower cost than available by going through the general insurance market. The company’s stock is controlled by one interest or a group of related interests so as to provide coverage for their business operations. A captive insurance company may be a non-admitted, nonresident or foreign insurer. Sometimes it may provide reinsurance to a self-insure or a domestic company.
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