Frequently Asked Questions (FAQs)
What is a Risk Retention Group (RRG)?
A Risk Retention Group (RRG) is a liability insurance company that assumes and spreads all, or a portion of, the liability exposure of its group members.
What is a Risk Purchasing Group (RPG)?
A Risk Purchasing Group (RPG) is a group which purchases liability insurance on a group basis only for its group members.
Where can I access the Federal Liability Risk Retention Act?
Click below to access an online copy of the LRRA.
What is “Amicus Curiae” and what does that term mean?
Amicus Curiae (Amici if plural) is a Latin term meaning “friend of the court.” It generally takes the form of a pleading procedure whereby an entity or group of entities or persons who are not “parties” to a judicial proceeding or legal case can be allowed to file supplemental briefing because they represent a larger group of people or businesses, such as an industry, and who/which could be adversely affected by a decision of the court if only narrowly focused upon the parties in the case. Amicus therefore appears as a “friend of the court” to assist the court in being able to see legal issues involving the “bigger picture” impacted by a prospective decision.
How Does the Liability Risk Retention Act Define Insurance?
Primary, excess, reinsurance, surplus lines, or any other means for shifting and distributing risk which is determined to be insurance under applicable state or federal law.
What is Liability Insurance for Purposes of the Liability Risk Retention Act?
Liability refers to legal liability for damages (including legal fees and other claims expenses) resulting in bodily injury, property damage, personal injury, or other types of loss or damage arising out of any business, trade, product, services (including professional services), premises, or operations, or any governmental activity. The term does not include personal risk liability (see definition below). Nor does the term include an employer’s liability with respect to its employees, unless that liability is under the Federal Employers’ Liability Act (FELA)
What is Personal Risk Liability?
Liability for damage to any person, property or other loss or damage resulting from personal, familial or household responsibilities or activities.
What does hazardous financial condition mean?
A risk retention group is in a hazardous financial condition when a risk retention group appears to be unable (1) to meet its policyholders’ obligations regarding known claims and reasonably anticipated claims, or (2) to pay other obligations of business operations.