An Inside Look at Protected Cell Captives
Constitution Insurance, domiciled in Nashville, Tennessee, is a Protected Cell Captive (PCC), offering captive solutions for small and mid-sized businesses, including insurance agencies, brokers, MGAs and other insurance intermediaries. The PCC is owned and operated by Chicago-based captive manager M.R. Mead & Company and Caitlin Morgan Insurance, a prominent wholesaler and Managing General Agency (MGA) with offices in Indiana and Ohio.
What is A Protected Cell Captive?
A Protected Cell Captive is licensed insurance and/or reinsurance company organized and regulated according to the insurance-captive laws of its domicile. A PCC is a single entity compromised of a core and one or more cells where the assets and liabilities are segregated from the assets of the PCC itself and from the assets and liabilities of the other cells. A PCC is formed by a sponsoring entity, such as Constitution Insurance, which manages the captive and provides minimum regulatory and operating capital.
A cell shareholder has general control over his or her cell and the insurance business written through the cell as specified in an agreement. Each cell stands alone so you’re protected from the activities of the other cells. That means that creditors of a cell don’t have recourse against the assets attributable to other cells or to the core assets. The insolvency of one cell cannot impact another cell. In addition, the nature of the risks and the risk management controls of other cells are not of concern to individual cell shareholders.
In addition, the beauty of a PCC is that it doesn’t require much of your company’s management time. PCCs are also less expensive to administer than would be the case in a company with multiple subsidiaries, and they can be formed quickly by a board resolution.
Talk to Us About Our Captive Solutions
A captive solution with Constitution Insurance may make sense for the successful business owner, association or high net worth individual looking to better manage their risks. We can help you choose the right structure to address your coverage and risk-financing challenges and turn a dead balance sheet item into a profit-making entity. Call us at 877.845.5069.