Risk Retention Groups RRG
In response to a hard insurance market in the mid 1908's, Congress passed the Liability Risk Retention Act of 1986. The legislation was intended to simplify the regulatory process for affinity groups such as doctors, real estate developers etc, who wanted to find an alternative to the and unavailability high cost of certain types of insurance coverage. The Act created two new legal statuses: Risk Purchasing Groups and Risk Retention Groups. Risk Purchasing Groups are simply groups (individuals or companies) that want to join together to buy insurance at group rates. The Act prohibits states from placing certain restriction on these groups. Risk Retention Groups (RRG) are insurance companies formed by an affinity group that enjoy an important regulatory status. Basically, the Act allows an affinity group to form an insurance company is one state (a sort of "home domicile") and be automatically qualified to do business in the other 49 states. In theory an RRG only has to file with the states outside its home domicile: * a plan of operation or a feasibility study which includes the coverage, deductibles, coverage limits, rates, and rating classification systems for each line of insurance the group intends to offer, and; * a copy of the group's annual audited financial statement submitted to the State in which the group is chartered, and; * a reserve statement prepared by a qualified actuary. In practice, state bureaucrats have proven very difficult to subordinate. There have been numerous suits against various states that have thrown up impediments that seem at odds with the Act. Wayne Walker
Principal, Windward Harbor LLC
© Windward Harbor LLC 2004
http://www.windwardharbor.com
Related News
|
 |
|
|
RELATED ARTICLES
Photography Insurance-Insurance for the Photographer
Part and parcel of establishing your own photographic business is establishing your own legal entity. This means establishing yourself for taxes. This is broader than the scope of this article, because every country has it's own business rules. Also every state in federal countries has different legal rules. The first thing you need to do is register your business according to your local rules, if you are unsure of this either take legal advice or go and see your local town hall and ask them about local legal requirements.
A Free Term Life Insurance Quote Is Only Easy To Obtain
By searching online for life insurance, you can get a free term life insurance quote with no obligation to buy. In order to get the free term life insurance quote, you fill in the form on the appropriate page of the life insurance company website. You do have to make sure you provide honest answers to all the questions in order to get the life insurance you need.
Discount Auto Insurance
Whether you are looking for car insurance in Canada, the USA, or somewhere else, finding discount auto insurance can save you plenty of money. The first thing you need to do is get auto insurance online quotes.
Health Insurance 101 for Individuals and Families
The changing healthcare and health insurance landscape in the United States has resulted in more individuals and families purchasing health insurance coverage on their own. Rather than touch on the number of reasons why this is the case, I would like to provide individuals and families finding themselves in this position with ten basic ideas to assist them with getting the best health insurance policy for their specific situation. Below is a combination of ten questions and suggestions that will provide the tools necessary to get a medical insurance policy that will best work for you and your family.
7 Sure-fire Ways of Reducing Your Home Insurance Premium
Home security improvement:
10 Ways To Save On Car Insurance
For most people car insurance is a the single largest insurance expense after health insurance. Rates are high and are forever climbing, at least it seems that way. You can save money on your car insurance premiums by following these easy to implement steps.
Long Term Care Insurance - Low Cost Alternatives For Budget Conscious Seniors!
With Nursing home Cost's running $4,000 to $6,000 a month and outpacing inflation, it is a small wonder that most seniors cannot afford the Long term Care insurance premiums. Their are low cost Alternatives available for seniors who just can't afford the rising cost of these Premiums.
Insurance Providers Weather the Storm While Consumers Flounder
We have just had the first year's anniversary of the flash flooding which occurred at Boscastle in Cornwall. The floods saw some of the worst damage wrought by sudden rainfall in the UK for many years.
How Can I Compare Life Insurance Quotes?
The online life insurance companies offer a free service where you can request a free quote for your life insurance needs. This enables you to compare life insurance quotes to see where you can save money with one over the other. To compare life insurance quotes, all you have to do is request a quote from as many companies as you wish and them compare the terms, the premiums, death benefit and clauses contained in each one.
What Do You Mean My Auto Insurance Policy Doesnt Cover This!!
Auto insurance is an agreement between you and your insurance company where you arrange to pay a premium in an exchange for the peace of mind that your insurance agency will pay for vehicle related financial losses during the duration of the policy. You need auto insurance because you are liable by law to pay for losses you cause to others in the event of an automobile accident. Purchasing auto insurance is the surest way to guarantee you will be able to fulfill your end of the bargain. In some states it is required that you have minimum forms of insurance in order to drive. You also must have insurance in order to finance a car.
Life Insurance Settlement
A new financial tool is now available for senior citizens. Life Insurance Settlements are quickly becoming a way for seniors to receive money from an under performing or costly life insurance policy.
Motor Insurance with Pass Plus
Is pass plus really worth it? What motor insurance discounts are available to people who have passed the course? Is it easy?
Health Insurance Quotes Online - Tips On Finding a Good Provider
Since 2001, major health insurance providers have been allowing consumers to buy policies online. Through the convenience of the internet, consumers are able to compare prices and coverage to find the best insurance policy for them. Before you sign up with a health insurance provider, you should consider price, company history, and coverage to make sure you find a good plan for your situation.
5 Strategies To Reduce Your Car Insurance Premiums
Your latest car insurance bill has arrived and it is not a pretty site. In fact, it is downright ugly! What can you do? Must you remain hostage to the ever spiraling rate increases foisted upon you when your policy renews? In a word, no. Let's examine five strategies you can practice today to help reduce your car insurance premiums immediately.
How Much Can My Auto Rate Increase After One Accident?
Accidents almost always make your insurance rates increase. Whether or not the accident was your fault, your insurance company may have to pay for your involvement in it. Most 'at fault' accidents result in an increase in premium, because the accident will get rated against all of your coverages. When supply decreases and demand increases, costs get more expensive.
Auto Insurance Primer
What is auto insurance? Auto insurance (or car insurance, motor insurance) is insurance consumers can purchase for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred. By buying auto insurance, depending on the type of coverage purchased, the consumer may be protected against:
Converting An Unwanted Life Insurance Policy Into Ca$h
Do You Own A Life Insurance Policy That You No longer Need or Want?
It is possible that you may be able to can get a CASH settlement in excess of the
current cash surrender value by selling your policy in the secondary market to an
investor.
How Will an HSA Save Me Money?
The Health Savings Account (HSA) is a tool to help you save money on health insurance. But how does it do that?
Six Ways to Cut the Cost of Your Auto Insurance
Is your auto insurance bill $12000 a year or even higher? It's not unusual for auto insurance to cost this much these days. But it doesn't necessarily have to cost this much. There are ways to reduce these costs. It might take a bit of work but it is possible to cut that insurance bill by a substantial amount.
We Dont Need Another Broker: How To Get The Best Liability Insurance Rates Available
Some business relationships are forged through blood and friendship. When you work for a company whose owner has a brother, sister, or best friend that sells insurance, your hands are usually tied when it comes to finding the best deal for your boss on insurance. Or maybe you are the boss, and you don't want to upset that lifelong relationship. That's understandable, but you aren't doing anyone any favors by not asking your friend or relative to compete.
|
