Definitions for "Captive Insurance Company"
A wholly owned or controlled subsidiary company established by a non-insurance parent for participation in the insurance risks of the parent and its other affiliates or associates.
An insurance company, formed and controlled by a separate company, whose purpose is to provide insurance to the controlling company. Companies which form captive insurance companies include all types of companies which extend credit to customers, including banks and retailers. See also agent-owned reinsurance company (AORC).----------[ Back
a bona-fide insurance or reinsurance company owned by a non-insurance company and which insures or reinsures the risks of its parents or affiliated companies