Protected Cell Company (PCC)

Published:

Definition - What does Protected Cell Company (PCC) mean?

A protected cell company (PCC) is a company system that consists of a core company and its cells. The cells are business units that have their own assets and liabilities.

While they are part of the same company, a cell cannot use the resources of another cell without the approval of those overseeing that cell, nor will legal action against one of the cells affect the others.

It is also known as a segregated portfolio company (SPC).

Insuranceopedia explains Protected Cell Company (PCC)

Separating the financial assets of each cell protects it from the misfortunes or wrongful actions of the others. A cell cannot simply dip into the funds of another to pay for its liabilities, for instance. This fiscal independence can also absolve the core company of certain financial and legal burdens.

PCCs can only be functional in states that legally recognize this particular system.


How Well Do You Know Your Life Insurance?

The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

Share this: