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In a rent-a-captive, a participant uses an insurer owned by someone else — the sponsor — to retain its own risk under a contract, without forming or owning a captive. The participant usually posts collateral and takes the results of its own program. Some states also use "sponsored captive" as a statutory class built around protected cells.
Captive capacity rented from a sponsor's insurer under contract, without forming a captive of your own.
1 active provider
How are these providers ranked?"Sponsored" describes who owns the vehicle; "segregated" describes how your assets and liabilities are kept apart from others'. An arrangement can be sponsored without statutory segregation (a classic rent-a-captive) or sponsored with it (a protected cell). Confirm both before comparing offers.
| Question | What to ask the sponsor |
|---|---|
| Legal form | Is this a contractual rental, an unincorporated cell or an incorporated cell, and under which statute? |
| Segregation | What protects our funds if another participant or the sponsor fails? |
| Collateral | How much, in what form, and when is it released? |
| Control | What decisions on claims, reinsurance and investments do we make? |
| Exit and legacy | What happens to open claims and collateral when we leave? |
A captive manager or consultant can compare sponsor offers; counsel should read the participation agreement and the governing statute.
Risk Services, LLC is a full-service captive insurance manager providing formation, licensing, accounting, financial reporting, regulatory compliance, underwriting, policyholder administration, reinsurance intermediary and fronting support services.
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