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Series, LLC Captive Structures
In early 2010, Delaware made cell-type captive structures more flexible and premium efficient, with the first series limited liability (LLC) captive. This captive is similar to a protected cell captive in that it’s a separate legal entity that can have one or more series business units (SBUs), which have limited liability and operational independence. The assets of one SBU are protected from the debts and obligations of other SBUs.
What’s more, SBUs are not subject to premium tax. There’s flexibility in cost and regulation. There’s ease of entry and exit into the captive. The SBUs can use their money more efficiently as they only cover their actual exposure and are not funding a regulatory minimum, eliminating having capital that’s not producing a return. And series entity captives can be structured to limit or eliminate fiduciary duties.
Caitlin-Morgan, whose mission is to provide our agencies and their clients with alternative risk solutions, formed Constitution Insurance Company, Ltd., a Delaware LLC, to offer the advantages and benefits that this captive structure provides. This type of captive is part of our portfolio of solutions that include: Single Parent Captives, Association Captives, Agency Captives, Protected Cell Captives and Rent-A-Captives.
We have the experience and expertise in helping clients explore the benefits of a captive and customizing the solution to fit the business or individual’s needs. Give us a call to discuss the various options available.
