Term Of The Day – Cell Captive
A cell captive is either a rent-a-captive or a sponsored cell captive. The main goal is to lower risk by separating the underwriting data and results into distinct entities. This allows for each cell to only be responsible for its cell and not for the underwriting results of another cell. If one of the cells would fail, then the other cells would have no legal or monetary responsibilities for the failed cell. This lowers the risk dramatically.