Life & Health · Chapter 1 · Company Types
Risk Retention Group (RRG)
Definition
A group-owned liability insurer formed under the federal Liability Risk Retention Act (1986): members in the same business or industry own the company and pool (retain) their own liability risk.
Example
A group of pharmacists forms a group-owned entity to insure their own malpractice exposure.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms