What Does Rent A Captive Mean?

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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

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.

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