Course Details
hours
7.0
price
$99.00
This course is not subject to discount pricing.
  • Course:
  • Internet
  • Exam:
  • Internet

Additional Credit Available:

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Forming and Operating a Captive Insurer

Reaccreditation >> IRMI Renewal

Course Description
Captive insurers continue to be formed even during soft market conditions, because when properly used, the captive is an effective risk management tool. Industry statistics indicate that there are more than 5,000 captives on a worldwide basis and that, even during the soft market of the 1990s, the rate of increase in active captives averaged about 5 percent annually. Accurate numbers are hard to achieve in part because of the different classifications of captives. What is a captive in one domicile may be a commercial reinsurer in another. This course examines three aspects of captive management with emphasis on the legal environment in which captives must operate:  the formation of a captive, captive operations, and the issue of unrelated business.

Learning Objectives
This is an intermediate-level self-study course. Students who successfully complete this course will be able to

    • recognize the risk management purpose of using a captive to finance an entity’s risks, identify the elements of captive insurance, and recognize why a captive can insure many types of risks
    • recognize key differences between captives, commercial insurance, and self-insurance plans
    • distinguish among various types of captive insurance companies
    • identify factors to be considered in evaluating the cost of risk and recognize the various ways in which the costs of financing risks through a captive can be lower than the costs of commercial insurance or self-insurance plans
    • identify reasons for conducting a captive feasibility study
    • recognize the various factors affecting a captive’s choice of domicile
    • identify the documents and filing procedures involved in forming a captive
    • identify the ongoing responsibilities of a captive’s board members
    • recognize the ways in which a captive’s underwriting documentation and other reports and filings can support the captive’s purpose and make it clear that the captive’s policies legally qualify as insurance
    • identify the types of information that should be included in a captive’s financial statements
    • distinguish between related and unrelated business written by a captive
    • recognize how unrelated business can support the objectives of various types of profit center captives

    Prerequisites
    An understanding of how the insurance industry is structured.

    CPE Field of Study

    Management Services

    WebCE® is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

    By IRMI

    International Risk Management Institute, Inc. (IRMI), is the premier provider of risk and insurance continuing education and reference services. IRMI was the first publisher of reference content covering the field of risk finance in 1983 with the publication of Risk Financing, a comprehensive reference resource on all aspects of traditional and alternative market approaches. IRMI is also publisher of the first newsletter to cover the field of captives, Captive Insurance Company Reports; two comprehensive books on the subject of captive insurance; and Captive.com, the first and foremost information resource and networking center on the Internet for the alternative market. Use the knowledge you gain from IRMI CE courses with confidence, knowing they are written by seasoned risk and insurance professionals who employ diligent quality assurance standards to provide the most up-to-date, practical, and reliable information possible.