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CAPTIVE INSURANCE: An Introduction

Hypo:ABC Co. is an American pharmaceutical company that sells products internationally. Recently, one of its controversial drugs has been proved ineffective, causing thousands of angry patients to file suits against the company. ABC Co. has an insurance policy with ForeverGreen Insurance Inc. Due to its massive litigations, ForeverGreen has increased ABC’s premium threefold from the previous policy. Feeling that it has been taken advantage of by ForeverGreen, ABC’s Directors decided to seek an alternative insurance method where it can control its own destiny.
In the U.S. and internationally, thousands of companies face similar situations to ABC Co.’s. To solve their problems, the insurance market has created Captive Insurance, an alternative to the traditional insurance method where companies can manage their own risks and self-insure themselves. In the following sections, this guide explores the definition of captive insurance; its advantages and disadvantages.
Definition A captive in…
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Hear it from the Expert: Robert (Rob) Spencer and His Leadership as Vice President and General Counsel of Lockheed Martin Aeronautics

Robert (Rob) Spencer is Vice President and General Counsel of Lockheed Martin Aeronautics Company. In these roles, he is responsible for the overall direction and leadership of the company's General Counsel organization, providing legal advice and guidance to all programs, functions, and company senior management. 
In addition to heading the company's Legal Department, he leads Aeronautics' Internal Controls and Audit function, helping to ensure the integrity of Aeronautics' business systems. He also provides administrative oversight of the company's Security and Emergency Services operations. The combination of the Legal, Internal Controls and Audit, and Security and Emergency Services departments make up the largest General Counsel organization in Lockheed Martin Corporation.
Before assuming his current position in October 2013, Mr. Spencer was Vice President and Deputy General Counsel - Litigation & Compliance for Lockheed Martin, in charge of litigation, comp…