A risk financing tool under which the source of funds is the firm itself or borrowings it must repay.Captive Insurer : In its pure form, an Insurer owned by apartment corporation which is also its only customer. One way of funding a retention programme.Captive Insurer, Association or Group : A captive Insurer owned by an association or group that insures only members of the association or group. A way of funding a retention programme.Planned Retention : Retention that results from a conscious decision. Active, not passive retention.Self-Insurance : A special case of planned retention-not Insurance. Exposures must be numerous enough for the loss exposure to be fairly predictable.Risk, Retention Groups : Liability insurance Companies owned by their Policyholders. Membership is limited to people in the same business or activity which exposes them to similar liability risks. The purpose is to assume and spread liability exposure to group members and to provide an alternative risk financial mechanism for liability. Such companies are usually precluded from writing certain coverage, most notably property lines and workers’ compensation. They predominantly write medical malpractice, general liability, professional liability, products liability and excess liability coverage. They can be formed as a mutual or stock company or a reciprocal.
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Characterized by paying losses with funds that originate within the organization ; or
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UK: The term used to describe the self-insurance assumed by an entity by means of deductibles on conventional insurances or by choosing not to insure at all.