Alternative Risk Financing Facilities
Barron's Insurance Dictionary:
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Alternative Risk Financing Facilities
Provide mainstream coverage to their members that include corporations, public entities, and professionals. These facilities were originally established and capitalized by organizations and individuals with common requirements for insurance who could not obtain coverage on the commercial markets; could not obtain coverage at an acceptable price; could not effectively act as a captive insurance company ; or could not act as a self - insurer . Coverages written include property insurance, workers compensation insurance, directors and officers liability insurance, medical malpractice liability insurance, and primary and excess liability insurance. Insureds include a broad range of organizations and individuals: medical personnel, banks, manufacturers, public entities, nonprofit entities, contractors, and transportation companies and systems. The major portion of the facilities is domiciled in Bermuda.
| Alternative Risk Financing, Alternative Minimum Cost Method, Alternative Dispute Resolution (ADR) | |
| Ambiguity, Amendment, American Academy of Actuaries |
Investopedia Financial Dictionary:
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Alternative Risk Financing Facilities
A type of private insurer that offers various types of coverage to both individuals and institutions. These insurers were originally created by groups of people or organizations that had a common need for a type of coverage that was not available commercially. In most cases, these same parties supplied the initial start-up capital to fund these facilities.
Investopedia Says:
Alternative risk financing facilities can provide several different types of coverage, such as property-casualty insurance, worker's compensation, directors and officers liability insurance and medical malpractice coverage. A wide variety of types of insured employ these facilities for coverage, such as banks, medical professionals, manufacturers and public entities. The majority of the headquarters for these entities are located in Bermuda.
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Barron's Insurance Dictionary
Dictionary of Insurance Terms. Copyright © 2008 by Barron's Educational Series, Inc. All rights reserved.
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