Rent-a-Captive
Captive and rent-a-captive insurance programs are an alternative to traditional fixed-cost insurance products. Captive insurance programs enable a business or group of businesses to retain the profits normally assumed by the insurance carrier. These programs can take the form of either a single parent captive that is utilized by a single business, or a group, or member owned, captive that is shared by two or more unrelated employers.
JI has formed a rent-a-captive that allows businesses to use a portion of the captive for a fee. The rent-a-captive is structured to protect each business from exposure to other businesses using the same rent-a-captive. This arrangement is typically referred to as segregated portfolio accounts or protected cell companies. Many businesses prefer a rent-a-captive because it is more cost effective, has fewer barriers to entry, and is easier to exit.
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