What is the difference between captive and excess insurance?

Captive and excess insurance are two types of insurance that provide protection for businesses. Captive insurance is a type of policy that is designed to protect a specific business. It is purchased by the business, and the costs of the policy are the responsibility of that business. This type of policy can provide coverage for any type of risk that the business may encounter, such as liability, property damage, or medical costs. Excess insurance, on the other hand, is a type of policy that provides additional coverage to an existing policy. This policy acts as a top-up to a primary policy, and provides protection for those risks that are higher in value than what is covered by the primary policy. For example, if a business had an existing policy that did not cover certain areas of liability or medical costs, they could purchase an excess policy that would provide the additional protection needed. In New York, insurance regulation law governs both captive and excess insurance. The regulations require that insurance companies provide adequate coverage to their customers, and regulate how much premiums must be for the policies. The regulation law also ensures that insurance companies are transparent about their policies, so customers can make informed decisions about the coverage that is best for them.

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What is the difference between captive and excess insurance?

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