risk retention group (RRG)

Definition

A specialized type of insurance company formed under federal laws in which policy holders are also stockholders. This is in contrast to traditional insurance companies which are formed under state laws and policy holders hold no equity. RRGs are limited to insuring businesses of a similar type and its members control both risk and litigation issues. While RRGs eliminate many excess filing and licensing fees, its members are not backed by a guaranty fund in case the company becomes impaired.

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The risk retention group was a great group and I was really happy it was formed because they helped a lot.

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You should try to have a good risk retention group on your staff so that you know you are being cautious enough.

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Peter was participating in a risk retention group so that his interests would be represented in the event of a personal emergency and also as a savvy investor.

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