What does Captive mean? Read on to discover the definition & meaning of the term Captive - to help you better understand the language used in insurance policies.
An insurance company that has as its primary purpose the financing of the risks of its owners or participants. Typically licensed under special purpose insurer laws and operated under a different regulatory system than commercial insurers. The intention of such special purpose licensing laws and regulations is that the captive provides insurance to sophisticated insureds that require less policyholder protection than the general public.
We hope the you have a better understanding of the meaning of Captive.