What is a PCC captive?
What is a PCC captive?
What is a Protected Cell Company? A PCC is an insurance vehicle whereby multiple ‘cells’ are connected to a core; creating a single legal entity. The assets and liabilities of each cell are segregated from the other cells. Protected Cell Company Diagram. How Does a PCC Compare to a Captive?
What is a single cell captive?
Cell Captives are entities consisting of a core and an indefinite number of cell entities which are kept legally separate from each other. Each cell has dedicated assets and liabilities ascribed to it, and the assets of an individual cell cannot be used to meet the liabilities of any other cell.
What does captive mean in insurance?
Issue: In its simplest form, a captive is a wholly owned subsidiary created to provide insurance to its non-insurance parent company (or companies). Captives are essentially a form of self-insurance whereby the insurer is owned wholly by the insured.
What does a cell captive insurer consist of?
A cell captive arrangement is where a company (participant) chooses to self-insure itself by owning a class of shares (to form a cell) in a special purpose vehicle insurance company.
How does a rent a captive work?
Rent-a-Captive — an arrangement in which a captive insurer “rents” its facilities to an outside organization, thereby providing the benefits that captives offer without the financial commitments that captives require.
What are the benefits of a captive insurance company?
The advantages of going captive are:
- Coverage tailored to meet your needs.
- Reduced operating costs.
- Improved cash flow.
- Increased coverage and capacity.
- Investment income to fund losses.
- Direct access to wholesale reinsurance markets.
- Funding and underwriting flexibility.
- Greater control over claims.
How does a rent-a-captive work?
What is a protected or segregated cell captive?
Definition. Segregated Cell Captive (SCC) – a special purpose insurer (typically operating as a rental captive) that establishes legally segregated cells or underwriting accounts. The objective is to ensure that assets in one underwriting account may not be used to satisfy liabilities in another underwriting account, nor the general (noncellular) liabilities of the SCC.
What is single cell captive?
A single cell captive can be formed to benefit a single company (Single Parent) or multiple companies (Group, Association, or Agency). Multi-Cell (Rent-A-Captive). These are captives structured so there is a large, single captive company that allows multiple captives to be formed and operate inside of it.
What is protected cell company (PCC)?
A protected cell company (PCC) is a legal entity that consists of a core linked to several cells.
