Risk Retention Group
A liability insurance company owned by its members, formed under the federal Liability Risk Retention Act to provide coverage for similar risks shared by its member-owners.
Risk retention groups (RRGs) are member-owned insurers where all members share similar liability exposures. Common in healthcare, transportation, and professional services, RRGs are chartered in one state but can operate nationwide without obtaining licenses in each state, thanks to federal preemption under the Liability Risk Retention Act of 1986.
For COI compliance, RRG certificates require specific attention. RRGs are not admitted carriers in states other than their chartering state, meaning they are not covered by state guaranty funds in most jurisdictions. However, they are also not surplus lines placements and occupy a unique regulatory space.
Compliance platforms should maintain a database of registered RRGs and their chartering states. When a certificate lists an RRG, automated systems should verify the entity's active registration and flag the absence of guaranty fund protection for the certificate holder's awareness during compliance review.
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