The Federal Liability Risk Retention Act of 1986 has the distinction of being the only federally-enacted insurance legislation; all other insurance is regulated by the states. Congress created risk retention groups (RRG) in reaction to the lack of affordable liability insurance during the 1980s. Because RRGs are federally chartered, they are required to be licensed only in the state in which they are domiciled, and may do business in any other state without separate licensure.

Groups are only permitted to write liability-based insurance such as:

  • Third-party Liability
  • General Liability
  • Errors and Omissions
  • Directors and Officers
  • Medical Malpractice
  • Professional Liability
  • Product Liability

Our approach to risk retention groups mirrors our approach to captives– each client is unique and presents different challenges and opportunities. Organizations experience the following advantages by utilizing a RRG:

  • Avoidance of multiple state filing and licensing requirements
  • Member control over risk and litigation management
  • Ability to tailor-make benefit designs and rate
  • Unbundling of services
  • Elimination of market residuals
  • Exemption from countersignature laws for agents/brokers

At Spring, we manage the process from creation to implementation, encompassing:

  • Strategy and business plan development
  • Domicile and captive management selection
  • RRG licensing and capitalization
  • Plan design and underwriting
  • Vendor selections and contract negotiation
  • Oversight of vendor implementation process

Contact us for more information about our services for Risk Retention Groups.