Captive insurers continue to be formed even during soft market conditions, because when properly used, the captive is an effective risk management tool. This course examines three aspects of captives with emphasis on the legal environment in which captives must operate: the formation of a captive, captive operations, and the issue of unrelated business. It discusses the risk management purposes of using a captive, the differences between various types of captives, the factors affecting the choice of domicile for a captive, the filing procedures involved in forming a captive, and the responsibilities of a captive's board members.