Captive Insurance Companies: Do They Provide "Insurance"?

Abstract

This article explores captive insurance companies and focuses on whether a true "insurance" relationship exists between captive insurer and its insured. After providing a general background to captives, the article briefly visits the legal definition of "insurance" and then considers the captive insurer/insured relationship to determine whether an "insurance" relationship exists. Finally, the article considers situations where the existence or absence of a true "insurance" relationship may be of significance.