Risk Retention Groups from Caitlin Morgan
A Risk Retention Group (RRG) operates under the auspices of the 1986 Risk Retention Act (RRA) and is a group self-insurance plan or group captive insurer for the purpose of assuming and spreading risk for commercial liability exposure of its members. All liability exposures, including General Liability, Errors and Omissions, Directors and Officers, Medical Malpractice, Professional Liability, and Product Liability of its owners can be covered. It does not extend to Workers’ Compensation, Property insurance, or to personal lines insurance.
Members of an RRG must be engaged in similar businesses and have similar or related liability exposures among each other. In addition, authorization under the federal statute allows a group to be chartered in one state, but able to engage in the business of insurance in all states, subject to certain specific and limited restrictions.
Caitlin Morgan Insurance Services can assist you with establishing an RRG. Our seasoned and experienced experts can help determine if an RRG makes sense for your clients.
Advantages of a Risk Retention Group
- No multiple state filing and licensing requirements
- Member control over risk and litigation management issues
- Establishment of stable market for coverage and rates
- Elimination of market residuals
- Exemption from countersignature laws for agents and brokers
- No expense for fronting fees
- Unbundling of services
There are also disadvantages to an RRG that should be noted, including that only liability insurance coverage can be written and there is no guaranty fund available for members.
We invite you to learn more about us and how we can help you expand your business.
Contact the experts at Caitlin-Morgan today and experience the benefits of working with a new kind of MGU and wholesale brokerage. For more information, call 317-575-4440 or complete the contact form on this page.