What type of insured uses their own employee purchaser for policies with annual premiums of six digits or more?

The correct answer is that an industrial insured uses their own employee purchaser for policies with annual premiums of six digits or more. Industrial insureds typically refer to larger commercial entities that require substantial insurance coverage and can often negotiate terms directly due to their size and financial capabilities. This allows them to engage their own employees or dedicated staff to handle the procurement of insurance policies, making it more efficient and tailored to their specific needs.

In contrast, while risk retention groups and purchasing groups serve collective needs, they are typically focused on pooling resources among members to achieve better rates and coverage rather than relying on an internal employee purchaser. A captive insured is a company that creates its own insurance company to finance its risk, which differs fundamentally from the model of using an employee to buy insurance on behalf of the company. Thus, the context of using an employee purchaser for high-premium policies aligns clearly with the definition of an industrial insured.