What is the difference between captive and excess insurance?

The difference between captive and excess insurance in Idaho is mainly related to the type of insurance coverage. Captive insurance refers to a form of insurance where an individual or business agrees to buy insurance through the same insurance company, and the insured agrees to pay a specific premium. The captive insurance company would provide all of the necessary coverage and any claims made by the insured would be covered by the insurance company. Excess insurance, on the other hand, is a form of insurance coverage that is used to supplement primary insurance policies in Idaho. It serves as an extra layer of protection that can help to reduce the insured’s financial exposure. It is often used in cases of high-risk activities or when extended coverage is required. In summary, captive insurance provides full coverage for individuals or businesses and is obtained from the same insurance company. Excess insurance provides extra coverage to supplement primary insurance policies and is used for high-risk activities or for extended coverage. Both types of insurance are regulated by Idaho insurance regulation laws.

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What is the difference between captive and excess insurance?

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