| | | | What is a Rent-A-Captive? | |
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A Rent-A-Captive (or Protected Cell captive facility) is basically a captive that is broken down into unlimited mini-captives or what the industry refers to as "Cells." Each cell within the Rent-A-Captive facility can be rented for a fee. Further, each cell stands on its own within the overall captive. (see diagram).
As described by the Arkansas Captive Law, the assets of one cell cannot be commingled or breached by the assets of another cell within the captive. This protects each insured's assets from each other, and makes sure that the failure of one cell does not effect other cells within the Rent-A-Captive facility. This concept has been utilized very effectively in Bermuda since the 1970's, and has become very popular within the last 10 years.
Traditionally captives were set up only by Fortune 1000 companies because they were costly set up and expensive to maintain, but in the late 1980's many smaller companies also started utilizing captives for their benefits which lead to the use of rent-a-captives due to the reasonable cost.
AMC Re took the Bermudian rent-a-captive concept and replicated it in Arkansas, allowing us to pass along all the same advantages of a captive to our clients around the country.
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| | | If you're interested in our On-Shore Rent-A-Captive program, please take a minute to complete our simple agency profile. It's as easy as 1-2-3. | |
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| | | | If you have questions or would like more information about AMC RE, contact:
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