Member-owned programs come in several legal forms, and the membership label does not tell you which one applies. The form decides who regulates the program, which lines it can write and what members owe. The closest alternatives are a group captive and a risk retention group; public bodies often use public entity pools instead.
| Feature | Association captive | Group captive | Risk retention group |
|---|
| Who it insures | Members of an association and, depending on the domicile, their affiliates and the association | Several unrelated owners, often in the same industry | Members with similar or related liability exposures |
| Legal basis | The domicile’s captive law (for example, Vermont’s association captive type) | The domicile’s captive law; the statutory type varies | Federal Liability Risk Retention Act and the chartering state’s law |
| Lines | Depends on the license and domicile | Depends on the license and domicile | Liability only |
| Writing in other states | Often through a fronting insurer | Often through a fronting insurer | Chartered in one state; registers in others |
Before joining, read the governing documents for capital and collateral commitments, assessment rights, distribution rules and what happens to your obligations if you leave. A captive manager experienced with member programs and counsel who can review the documents are the usual first contacts. How providers in the listing below are included and ordered is explained in the Bastivo methodology.
