Cell captive
Okay kiddo, so you know how when you go to the zoo, different animals are kept in different cages, right? Well, a cell captive is kind of like that, but instead of animals being kept in cages, it's money that's being kept in its own special area.
You see, a cell captive is a way for companies to manage their own insurance without having to go through big insurance companies. It's like having your own insurance zoo, where different types of money are kept in their own little cages, or "cells."
Let's say a company makes cars, and they want to insure themselves against any accidents that happen on the road. Instead of just buying insurance from a big insurance company, they can create their own cell captive. That means they set aside some money specifically for car accidents, and they only use that money for car accident claims.
The company even gets to decide things like what types of accidents they will cover and how much money they will set aside for it. And if there's any money left over at the end of the year, they get to keep it!
So basically, a cell captive is like a special little bank account where a company can save money for specific types of insurance claims, and have more control over how the money is used. Cool, huh?
You see, a cell captive is a way for companies to manage their own insurance without having to go through big insurance companies. It's like having your own insurance zoo, where different types of money are kept in their own little cages, or "cells."
Let's say a company makes cars, and they want to insure themselves against any accidents that happen on the road. Instead of just buying insurance from a big insurance company, they can create their own cell captive. That means they set aside some money specifically for car accidents, and they only use that money for car accident claims.
The company even gets to decide things like what types of accidents they will cover and how much money they will set aside for it. And if there's any money left over at the end of the year, they get to keep it!
So basically, a cell captive is like a special little bank account where a company can save money for specific types of insurance claims, and have more control over how the money is used. Cool, huh?