A CAPTIVE formed as a licensed INSURER or REINSURER that is owned by a number of companies, and which writes INSURANCE cover for all of them. Since a group captive engages in a significant amount of third party business, it generally receives more favorable tax treatment than a PURE CAPTIVE . Also known as an ASSOCIATION CAPTIVE or MULTIPARENT CAPTIVE. See also AGENCY CAPTIVE , CAPTIVE, PROTECTED CELL COMPANY , RENTACAPTIVE , SISTER CAPTIVE .
Black’s Law Online Dictionary
