captive insurance?

Question

good or bad idea

Answer 1

Sure. Its a good idea. In case the other inmate beats you up, molest you, or kill you, you will receive insurance money (or your family will receive it if you die.)

Answer 2

Great idea.

The problem with captive insurance is that it is not for every body and as a result, is not widely known. For decades, large companies have formed private captive insurance companies to mitigate business risks and insure their companies against the kind of risks that traditional insurance companies will not cover. These include risks like tornado, business disruption, flood that damages only equipments, lawsuits that result in damages, and just plain mistakes from their employees.

Today, small and medium sized businesses are getting in on the act. Unlike traditional business or commercial insurance, captive insurance policies are geared towards certain risks. Individuals (as long as they have a million dollars or so), groups or businesses can form captives. Case in point; AT&T in April 2014 announced the formation of their captive insurance company in Texas.

Answer 3

I've noticed the Farmers insurance agents have a pretty good deal. They are considered Independent Contractors. Their contract states that if it can be placed with Farmers then it must be (no shopping every single piece of business that comes through the door plus increasing your contract value with them). If it doesn't fit though, you're free to market it to where ever you please (keeping all the insured's lines of business with YOU :>).

If you go captive, make sure you know what all they will and will not write. It's a pretty soft market right now, so lots of companies are writing just about anything that's not along the coastline, but check with other agents in your area to see what they've been able to write for the last two-five years or so.

Answer 4

That depends on the company. I have been a captive agent for a large company specializing in the Senior Market for over 5 years. I wouldn't be a broker for anything. If you are confident of the product you sell for the captive company, and know that you are selling not only a great policy, but a great company, then you can focus on learning just the policies they sell vs. learning a little about all the products that you may be able to get them. Much better understanding of claims, benefits, and underwriting. I love it, and wouldn't change for anything. Not even more money.

Answer 5

Captives are excellent where the company is in a specialised market and they are large enough (fleet wise) to justify the expense.

The definition of a Captive is

A captive insurance company is, in its simplest and purest form, an insurance company that only insures all or part of the risks of its parent.

Answer 6

I run a captive for one of my companies, the cost of running the business is substantial but allows me to have the benefit of good risk managment instead of giving to an insurance company

Answer 7

Are you asking if they are a good idea financially or ethically?
Basically they are insurance companies set up by large companies who pay gigantic insurance premiums as way to claw some money back. Not for the average guy.

Answer 8

Being a captive agent narrows what you can and can't do - I'd never recommend it.

Answer 9

Errr I am not exactly sure what you mean

Answer 10

what's that?