Introducing Risk Retention Groups

A summary of the advantages and disadvantages of Risk Retention Groups.

The 1986 Act requires that all owners of a Risk Retention Group must be insured with the Risk Retention Group and engaged in similar businesses or activities. The Act requires that each group must be licensed in at least one state but that once this is accomplished it may accept liability risks in all states.

Risk retention groups started emerging in the mid 1980's as a result of the passing of the Federal Liability Risk Retention Act of 1986.