Types

Pure Captive Insurer (single parent) – an insurer that only insures the risk of its parent and affiliated companies or controlled unaffiliated businesses and can include a branch captive insurer.

Association Captive Insurer (consortium) – an insurer that only insures risks of the member organizations of an association and the affiliated companies of those members, including groups formed pursuant to the Federal Liability Risk Retention Act of 1986.

Sponsored Captive Insurer – a captive insurer in which the capital and surplus is provided by one or more sponsors and only insures risk of its participants through separate participant contracts.

Risk Retention Group (RRG) – association or group captive formed in accordance with the requirements of the Product Liability Risk Retention Act of 1981 (as amended).

Branch Captive Insurer – an alien or foreign captive insurer licensed to transact business of insurance through a business unit with a principal place of business in Kentucky.

Special Purpose Captive Insurer – an insurer established for one specific purpose or transaction, where it is desirable to isolate the purpose or transaction from ownership and/or activities of the parties.

Protected Cell – a separate account established by a sponsored captive insurer in which the assets are maintained for one or more participants in accordance with the terms of a participant contract.