Risk Retention Groups Law and Legal Definition

Risk Retention Groups are owner controlled insurance companies authorized by the Federal Liability Risk Retention Act of 1986. These companies allows members who engage in similar or related business or activities to write liability insurance for all or any portion of the exposures of group members, excluding first party coverage, such as property, worker s compensation and personal insurance. RRG can be chartered in one state, but able to engage in the business of insurance in all states, subject to certain specific and limited restrictions. These companies can be formed as a mutual or stock company, or a reciprocal.