Risk Retention Groups
Author: Richard J. Hillman
Publisher: DIANE Publishing
Published: 2006-02
Total Pages: 118
ISBN-13: 9781422303702
DOWNLOAD EBOOKRisk retention groups (RRG) increase the avail. & affordability of commercial liab. insur. An RRG is a group of similar bus. that creates its own insur. co. to self-insure its risks. Through the Liab. Risk Retention Act (LRRA), Congress partly preempted state insur. law to create a regulatory framework for RRGs. Recent shortages of affordable liab. insur. have increased RRG formations, but recent failures of RRGs raised questions about the adequacy of RRG reg. This report: examines the effect of RRGs on insur. avail. & affordability; assesses whether LRRA's preemption has resulted in significant regulatory problems; & evaluates the sufficiency of LRRA's ownership, control, & governance prov. in protecting the best interests of the insureds.