What is the definition of Risk Retention Groups?

Risk Retention Groups and groups made up of insurance companies who form a pool (as self-insurers) that will assume liability insurance and other big-ticket insurance. The risk retention group is incorporated, chartered and licensed to provide insurance products.

By forming risk retention groups, insurance companies do away with the need to comply with state licensing and filing requirements for each and every company - they do it all in one go under the risk retention group. The group is able to do away with market residuals (by offering insurance to individuals and groups who otherwise may not be able to buy a particular line of insurance protection), as well as offer bundled services and establish a steady market for a particular line (with accompanying rates and coverages). Member companies still retain control over its operations.

• Insolvency
• Misstatement of Age or Sex Provision
• Modified Premium Policies
• Moral Hazard
• Comprehensive Coverage