Risk Retention Groups RRG

In response to a hard insurance market in the mid 1908's, Congress passed the Liability Risk Retention Act of 1986. The legislation was intended to simplify the regulatory process for affinity groups such as doctors, real estate developers etc, who wanted to find an alternative to the and unavailability high cost of certain types of insurance coverage. The Act created two new legal statuses: Risk Purchasing Groups and Risk Retention Groups.

Risk Purchasing Groups are simply groups (individuals or companies) that want to join together to buy insurance at group rates. The Act prohibits states from placing certain restriction on these groups.

Risk Retention Groups (RRG) are insurance companies formed by an affinity group that enjoy an important regulatory status. Basically, the Act allows an affinity group to form an insurance company is one state (a sort of "home domicile") and be automatically qualified to do business in the other 49 states.

In theory an RRG only has to file with the states outside its home domicile:

* a plan of operation or a feasibility study which includes the coverage, deductibles, coverage limits, rates, and rating classification systems for each line of insurance the group intends to offer, and;

* a copy of the group's annual audited financial statement submitted to the State in which the group is chartered, and;

* a reserve statement prepared by a qualified actuary.

In practice, state bureaucrats have proven very difficult to subordinate. There have been numerous suits against various states that have thrown up impediments that seem at odds with the Act.

Wayne Walker
Principal, Windward Harbor LLC
© Windward Harbor LLC 2004
http://www.windwardharbor.com

---

Insurance Claim Handling Online - TPA Adjuster System

Claims management and administration software systems enable insurance claims adjusters,... Read More

Long Term Care Insurance

Long Term Care Insurance is needed in the event that... Read More

Why Should You Purchase Your Auto Insurance Online?

If you're interested in slashing your auto insurance bill in... Read More

Who Else Wants to Understand Travel Insurance Policy Language?

Aren't all travel insurance plans basically the same?No. When you... Read More

Shopping Options for Auto Insurance

Shopping for car insurance can be a big undertaking. It... Read More

Family Health Insurance Plans - How to Find The Best Provider Online

Family health insurance plans typically need to offer more coverage... Read More

Apply Online for Temporary Health Insurance

There are times when you'll find yourself temporarily without health... Read More

Life Settlements, More than a Cash Surrender Payout

With a life insurance settlement, seniors now have the ability... Read More

Term Life Insurance - Buy Term and Invest the Difference!

The phrase "BUY TERM AND INVEST THE DIFFERENCE" evolves around... Read More

How Will an HSA Save Me Money?

The Health Savings Account (HSA) is a tool to help... Read More

Why Should You Shop Around for Auto Insurance?

How do you know if what you are paying for... Read More

Are You Overpaying On Your Home Insurance Policy?

For many consumers the cost of daily living is becoming... Read More

What Price For Your Health?

How do you put a value good health? For many... Read More

Tips for Choosing a Life Insurance Company

More than 150 insurance companies offer thousands of life insurance... Read More

Tips for First Time Insurance Buyers

The are many scary things in this world. Buying insurance... Read More

Protecting Your Expatriate Family

If you and your family relocate overseas, one of your... Read More

What is Life Insurance?

Life Insurance is an insurance policy that provides an agreed... Read More

Private Medical Insurance- Finding The Right Policy for You

Why Private Medical Insurance Is Becoming So PopularRecent research indicates... Read More

Consumer Directed Health Plans

Most of you have heard about "consumer directed health plans".... Read More

Vehicle Insurance Online is a Convenient Way to Get Insurance Cheap

Online comparison shopping is a convenient way to get cheap... Read More

How Do I Calculate How Much Life Insurance I Need?

Life insurance protects you and your family from economic hardship... Read More

Cheap Insurance - Ten Ways

Cheap insurance? Auto insurance, life insurance, health insurance, liability insurance... Read More

Health and Dental Insurance Quotes - Applying Online

Since 2001, large health and dental insurance companies such as... Read More

UK House Insurance - The Risk of Under-insurance

For many years in the UK, motor insurance has been... Read More

Life Insurance Fears Post the London Bombings Tragedy

Following on from the tube train and bus bomb attacks... Read More

Can I Get Affordable Dental Care?

In the United States most companies offer their employees dental... Read More

The Ups and Downs of Temporary Health Insurance

If you're a recent college graduate, or in between jobs,... Read More

Why Dont Women Have Life Insurance?

Traditionally, life insurance companies solicited men as the main breadwinners... Read More

General Knowledge - Critical Illness Insurance

Critical illness can happen to anyone, and often does. If... Read More

Japanese Overseas Travel Insurance

If you are an expatriate planning on long-term residence in... Read More

Types of Long Term Care Insurance

Regardless of what some people might think, medical insurance will... Read More

Car Insurance Advice for Young Drivers in the UK

Over the course of the last ten years, car insurance... Read More

Car Insurance Discounts

Trying to save money wherever you can is important to... Read More