Regulatory
A protected cell is an account containing assets and liabilities that are linked to a particular insurance program and partitioned off from the assets and liabilities of other insurance programs and from the assets and liabilities of Oak Harbor Re’s general account. An insurance program involves multiple participants within a single protected cell. The intended effect of a protected cell is to protect the assets of one insurance program from the liabilities of other insurance programs. This is a commonly used structure in captive insurance arrangements.
Oak Harbor Re is registered under the North Carolina Captive Insurance Act, which enables it to establish, operate, and maintain segregated accounts for each insurance program.
Member Insured
Companies participating in an Oak Harbor Re insurance program are not owners or investors in Oak Harbor Re or in the protected cells associated with their program. Oak Harbor Re structures each program so that the rights and obligations of each participant are defined in the program’s Protected Cell Program Agreement (PA). A participant signing a PA is a counterparty to its designated segregated account and is entitled to all of the rights and subject to all of the obligations as described in the PA.
Oak Harbor Re’s management maintains a high degree of control over the assets and liabilities linked to a protected cell. Participation in an Oak Harbor Re program is not intended to mirror the rights and control that a participant would have in its own wholly owned captive. Rather, it is intended to be a simplified way to participate in a group captive program with a greatly simplified entry and exit process.
Oak Harbor Re encourages companies seeking a higher degree of control to consider forming their own wholly owned captive. Some companies start in a protected cell program and migrate to a wholly owned captive in later years. Oak Harbor Re will work with you and help transition you from Oak Harbor Re to a wholly owned captive.
Additional Resources
To learn more about protected cell companies, please read these materials:
North Carolina Captive Insurance Act
Read the full Captive Insurance Act