Captive insurance company

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Posted: Wed Oct 29, 2008 6:07 am Post subject: Captive insurance company

Could you guys give me an idea of the benefits of a captive insurance company? _________________ Register Now to have your Insurance queries solved.

Crossbreed

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Posted: Wed Oct 29, 2008 7:10 am Post subject:

Hi, I'd rather summarize the benefits of a captive insurance company as follows: They would offer you benefits that are specifically designed to meet your needs You'd be offered a premium rate based upon the history of your own past losses. Lesser expenses towards your operations More in terms of coverage ArindamSenIndies

ArindamSenIndies

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Joined: 14 Feb 2007
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Posted: Wed Oct 29, 2008 8:49 am Post subject:

Hi, It definitely has some income out of investments which could be used to cover up the losses. It would directly connect you with the wholesale market of reinsurance. It also offers more funding and underwriting opportunities. You'd enjoy more authority over the claims process and earn more out of loss reduction. You'd have a broader scope to negotiate with the fellow underwriters. At the same time, you'd also be in a position to manage risks in a better way! Norma_hepburn _________________ Register Now to have your Insurance queries solved.

Norma_hepburn

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Posted: Wed Oct 29, 2008 10:34 am Post subject:

The captive offers coverage only for its parent organizations and its subsidiaries, thus the premium collected remains within company. However, the employer should be careful while insuring employees' benefits through a captive insurance company, because the Employee Retirement Income Security Act or ERISA has forbidden transactions with captive companies. Hope this helps. Thanks, Joyeeta

RupertWBradson

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Joined: 05 Jul 2007
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Posted: Wed Oct 29, 2008 10:43 am Post subject:

Many companies have their captive companies set at offshore locations to avoid tax complications. Hence, processing and settling the claims with the captive companies may experience some difficulties. ~Jeremy

JeremyHolter

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Joined: 06 Jun 2007
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Posted: Wed Oct 29, 2008 2:35 pm Post subject:

For my situation, I get to take advantage of their nationwide advertising that as an independent I would never be able to afford. Also, I own the economic interest in my book of business. When I decide to retire, I can "sell" my business and I pocket all the proceeds. _________________ Life moves pretty fast. If you don't stop and look around once in a while, you could miss it. - Ferris Bueller