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Terms Beginning with R
       
       
 

Risk Retention Group

Insurance Term


A Risk Retention Group (RRG) is a type of self-insurance entity that is formed by a group of like-minded businesses or individuals in the same industry or with similar risk exposures. The primary purpose of an RRG is to provide liability insurance coverage for its members, who are often unable to find affordable coverage in the standard insurance markets.

RRGs are regulated by the federal Liability Risk Retention Act of 1986, which allows them to operate as insurers in all 50 states, without having to obtain a separate license in each state. RRGs are also subject to regulation by the state in which they are domiciled.

RRGs provide liability coverage for many different types of risks, including:

- Professional liability (e.g., medical malpractice, legal malpractice)
- General liability (e.g., premises liability, product liability)
- Directors and officers liability
- Employment practices liability

RRGs offer several benefits to their members, including:

- Lower insurance premiums: Since RRGs are owned and operated by their members, they can often provide coverage at a lower cost than traditional insurers.
- Greater control: Members of an RRG have a say in how the group is run, and can have a say in the underwriting and claims processes.
- Tailored coverage: RRGs can provide specialized coverage that may not be available in the standard insurance markets.

Overall, RRGs are an attractive option for businesses and individuals looking to manage their insurance costs and have greater control over their insurance coverage. However, it is important to carefully evaluate the risks and benefits of joining an RRG, and to ensure that the group is financially stable and well-managed.


   
     

Risk Retention Group

Insurance Term


A Risk Retention Group (RRG) is a type of self-insurance entity that is formed by a group of like-minded businesses or individuals in the same industry or with similar risk exposures. The primary purpose of an RRG is to provide liability insurance coverage for its members, who are often unable to find affordable coverage in the standard insurance markets.

RRGs are regulated by the federal Liability Risk Retention Act of 1986, which allows them to operate as insurers in all 50 states, without having to obtain a separate license in each state. RRGs are also subject to regulation by the state in which they are domiciled.

RRGs provide liability coverage for many different types of risks, including:

- Professional liability (e.g., medical malpractice, legal malpractice)
- General liability (e.g., premises liability, product liability)
- Directors and officers liability
- Employment practices liability

RRGs offer several benefits to their members, including:

- Lower insurance premiums: Since RRGs are owned and operated by their members, they can often provide coverage at a lower cost than traditional insurers.
- Greater control: Members of an RRG have a say in how the group is run, and can have a say in the underwriting and claims processes.
- Tailored coverage: RRGs can provide specialized coverage that may not be available in the standard insurance markets.

Overall, RRGs are an attractive option for businesses and individuals looking to manage their insurance costs and have greater control over their insurance coverage. However, it is important to carefully evaluate the risks and benefits of joining an RRG, and to ensure that the group is financially stable and well-managed.


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