Series LLC Captives
Series captives are owned by a parent company with individual captives or cells. Unlike a segregated cell captive where the individual cells are treated as accounts, a series captive allows those individual members of the series to be treated like a captive. These Series Business Unites (“SBUs”) differ from a segregated cell captive in that SBUs exist pursuant to alternative entity laws and not pursuant to the captive insurance statutes that define protected cells.
Some notable advantages of series captives:
• Not subject to the minimum premium tax requirement or a standard minimum capitalization.
• More flexibility to define its governance mechanisms.
• Can be designed for simpler administration than a protected cell captive.
• Series entity law protects the assets of one SBU from the debts & obligations of other SBUs.