Types of Captives in Nevada

Pure/Single Parent Captive Insurer
A captive 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.

Agency Captive Insurer
An insurer that is owned or directly or indirectly controlled by an insurance agency or brokerage and that only insures the risks of policies which are placed through the agency or brokerage.

Association Captive Insurer
A captive insurer that only insures the risks of 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.

Branch Captive Insurer
A captive insurer domiciled in a country outside of the US, called an Alien Captive, who is licensed to transact the business of insurance through a Nevada domiciled business unit to gain access to the US market.

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 of 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.  Multiple, unaffiliated companies may be insured through a sponsored captive.  The Series LLC structure further promotes the separation of accounts and allows for mostly independent control of the cells and their business by the participants or shareholders, similar to the incorporated cell structures of other states.

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).  This may be an option of entry into captive insurance for small businesses or companies which want the benefit of a larger insurance structure.

Risk Retention Groups
RRGs are still considered captive insurers, but unlike other captive insurance types, the National Association of Insurance Commissioners (NAIC) has created model laws and oversight programs which have been adopted by Nevada. Any questions regarding applications and regulations for RRGs should be directed to finances@doi.nv.gov.

Check out these pages to find out more about Nevada Captives:
About Nevada Captives
Types of Captives
Application Process
Annual Reports, Fees, and Taxes
Captive Service Providers
Forms and Resources
Frequently Asked Questions
Meet the Team

Additional Links:
Nevada Captive Insurance Council
Captive.com
Nevada Revised Statute 694C
Nevada Administrative Code 694C
Nevada Governors Office of Economic Development