The Liability Risk Retention Act (LRRA), passed in 1986, authorized the formation Risk Purchasing Groups and Risk Retention Groups as a means to help businesses control the run-away cost of liability insurance.
A Risk Retention Group (RRG) is a liability insurance company that is owned by its members. They are domiciled in a US state and can write business all over the country. Like a traditional insurance company they take risk.
A Risk Purchasing Group (RPG) is comprised of homogenous insureds who band together to purchase their coverages from an insurance company at a discount. An RPG does not take risk.
Cedar Consulting LLC can provide the following services for RRG/RPG programs: