In 1986, the California Hospital Association (CHA) Board of Trustees voted to form a captive insurance company for the benefit of the CHA membership.  The Company was formed in 1988 in the state of California by nine hospitals.  The Company is a stock insurance company formed under the Risk Retention Act of 1986 and is domiciled in Hawaii.  Hawaii was selected for domicile because it enacted favorable “captive” legislation encouraging the formation of captives in the state.  The Company continues today as the only CHA endorsed health care professional liability insurance carrier.

Since the Company is a risk retention group, all policyholders must be shareholders and all shareholders must be policyholders.  Shareholders elect the Board of Directors, which then elects its officers. Recruiting and maintaining a strong Board of Directors comprised of health care executives who are well known in the industry is an important part of the business model.

Over the past 28 years, the Company has become one of the most successful captive insurance companies of its type in the world.  It is rated A- (excellent) by A.M. Best, the insurance industry rating agency, and is the longest continually operating hospital professional liability insurance company in California.