Capital structure is a term used in enterprise risk management (ERM) to determine the optimal combination of capital by type (i.e. debt, ordinary capital, preferred capital) given the risk profile and business objectives of the enterprise.
Capitation is the compensation of a health care provider based on the number of patients, not the volume of services provided. This is typically a premium method for health maintenance organizations (HMOs), where providers are paid a monthly rate for each employee who designates them as primary care providers.
The shipmaster’s doctrine is a common law doctrine, often used in operating room situations, whereby a doctor can be held responsible for the actions of subordinates (e.g., nurses, technicians) on the basis that the doctor is acting as “ship’s captain”. because he or she controls and directs the actions of those who provide assistance.
Captive is an insurance company whose main purpose is to finance the risks of its owners or members. They are usually licensed under specialty insurance company laws and operate under a different regulatory system than commercial insurers. The purpose of such special licensing laws and regulations is for the captive to provide insurance to difficult policyholders who require less policyholder protection than the general public.
Captive agents are employees of an insurance company who work exclusively for that insurance company. Insurers who use their own agent employees are known as “direct writers”.
A Captive Facility is an insurance or reinsurance company licensed under commercial or captive insurance laws used to provide captive insurance to policyholders who may or may not own a property.
The Captive Insurance Companies Association (CICA) is an association of risk managers established to educate, inform, support and provide valuable communication opportunities for members and stakeholders about captives, regardless of location or structure. CICA has no jurisdictional or commercial ties. Members come from a wide range of industries, with almost half of the members living in Bermuda and another quarter in Vermont. CICA joined forces with other government captives and risk management organizations to create a legislative body, the Coalition of Alternative Risk Financing Mechanisms (CARFM).
A captive management company is a firm in the domicile of the captive that specializes in accounting and other services for captive insurance companies, usually acting as the main representative of the captive in the domicile. The management company usually handles all necessary paperwork and record keeping, as well as dealing with other service providers such as auditors, actuaries, investment advisors and visiting insurance companies.