Types of Captives That May Be Formed

AGENCY CAPTIVE INSURER – An insurer that is owned or directly or indirectly controlled by an insurance agency or brokerage and that only insures risk of policies which are placed by or through the agency or brokerage.

ALIEN CAPTIVE INSURER – An insurer formed to write business for its parents and affiliates and is licensed pursuant to the laws of an alien jurisdiction which imposes statutory or regulatory standards acceptable to the Commissioner of Insurance on companies transacting the business of insurance in such jurisdiction.

BRANCH CAPTIVE INSURER – An alien captive insurer licensed to transact the business of insurance through a business unit with a principal place of business in Nevada.

ASSOCIATION CAPTIVE INSURER – 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.

PURE/SINGLE PARENT CAPTIVE INSURER – An insurer that only insures risks of its parent and affiliated companies or controlled unaffiliated companies or controlled unaffiliated businesses and can include a branch captive insurer.

RENTAL CAPTIVE INSURER – An insurer formed to enter into contractual agreements with policyholders or associations to offer some or all of the benefits or a program of captive insurance and that only insures risks of such policyholders or associations.

SPONSORED/SERIES LLC CAPTIVE INSURER – A captive insurer in which: (a) the minimum capital and surplus required by law is provided by one or more sponsors; (b) only insures risk or its participants through separate participant contracts; and (c) funds the liability for each participant through one or more protected cells where the assets of each protected cell are segregated from the assets of the general account of the sponsored captive insurer.

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(s).

Applications and Forms