A pure captive is an insurance company owned by a single parent organization that insures the risks of that parent and its affiliates or controlled unaffiliated business or businesses. It allows the organization to manage and finance its own risks through a licensed insurance company.

An association captive is typically owned by a trade association, industry group, or professional association and insures the risks of its members, their affiliated companies and the risks of the association itself. It allows members of the association to pool similar risks within a regulated insurance structure.

An industrial insured captive is owned by one or more large commercial organizations that meet certain financial and risk management thresholds. These captives insure the risks of participating organizations, their affiliates, and controlled unaffiliated businesses.

A sponsored captive is a captive insurance company that allows multiple participants to insure their risks through separate “cells” within the same legal entity. Each cell’s assets and liabilities are legally separated from those of other cells.

A special purpose financial captive is typically established by an insurance company to reinsure specific blocks of business or manage financial or regulatory objectives. These captives are often used to support capital management or risk transfer strategies.

This structure combines features of a sponsored captive and a special purpose financial captive, allowing a sponsor to establish protected cells that reinsure specific insurance risks. Each cell operates with legally segregated assets and liabilities.

An agency captive is an insurance company formed by insurance agencies or brokers to participate in the risks of policies they place with insurers. It allows agencies to align incentives and participate in underwriting results.

A branch captive is the U.S. branch of a captive insurance company that is licensed and domiciled in another jurisdiction but operates in Connecticut through a branch structure. The branch is regulated by the Connecticut Insurance Department for its Connecticut operations.

A risk retention group is a liability insurance company owned by its insured members and formed under the federal Liability Risk Retention Act of 1986, 15 U.S.C. § 3901, et. seq. Risk retention groups are restricted to writing only liability coverage. A risk retention group, once licensed in one state, may operate nationwide provided it properly registers with all other states in which it proposes to solicit or write insurance.