Operating the captive
This portion of the sets forth a plan for implementing the strategy. Although the details of the plan will be shaped by the captive-program structure and, to some degree, by the ultimately selected, standard operating components will almost always be included. These components include identification of the captive manager, lines of business, coverages, policy forms, limits, deductibles and retentions. Also included is a review of the source of operating funds such as premium amounts, letters of credit and projected investment income.