What does Rent A Captive mean? Read on to discover the definition & meaning of the term Rent A Captive - to help you better understand the language used in insurance policies.
Rent A Captive
An arrangement in which a captive insurer "rents" its facilities to an outside organization, thereby providing the benefits that captives offer without the financial commitments that captives require. In return for a fee (usually a percentage of the premium paid by the renter), certain captives agree to provide underwriting, rating, claims management, accounting, reinsurance, and financial expertise to unrelated organizations.
We hope the you have a better understanding of the meaning of Rent A Captive.