The Ohio legislation authorizes three types of captive insurance companies, in addition to risk retention groups:

• A pure captive that insures only the risks of its parent or affiliated companies of its parent.
• An incorporated protected cell captive insurance company that is a part of another captive insurance company and has a separate legal identity from the captive insurance company of which it is a part.
• A special purpose financial captive insurance company that assumes life insurance risks pursuant to a special purpose financial captive insurance contract with its parent or affiliated entity that is an insurer domiciled in the state of Ohio.  

The following entities are good candidates for a captive insurance program:

• financial stability
• good spread of risk with predictable losses
• good loss history
• good risk management practices
• the ability to finance its own exposure
• long-term commitment from senior management
• unusual or hard to place risks
• primary purpose must be for insurance