An insurance company organized and owned by a corporation to service its needs is called a __________________.

A captive insurer is an insurance company that is created and owned by a corporation to provide coverage for its own risks. This type of arrangement allows the parent company to manage its own risk management and insurance needs more effectively. By using a captive insurer, the corporation can tailor coverage specifically to its operations and have more control over its insurance strategy. Captive insurance is often used by larger corporations as part of their overall risk management strategy, enabling them to potentially lower costs, improve cash flow, and have greater flexibility in their insurance planning.

This arrangement differs from mutual companies, which are owned by policyholders and aim to serve their collective needs; stock companies, which are owned by shareholders and operate to earn profits for those investors; and reciprocal exchanges, which involve members exchanging insurance risks among themselves. Each of these other options serves different purposes and operational structures compared to captive insurers, which are specifically designed for the needs of the parent company that owns them.