Monitoring and Compliance
As expertise is developed coverage issues can be reviewed and monitoring the types of claims arising will be important to the evaluation of whether coverages need to be restricted or can be broadened. As loss expertise is developed recommendations made to members as to how loss prevention techniques can be implemented to help reduce losses.
Compliance
The Liability Risk Retention Act requires that every Risk Retention Act shall submit to the Insurance Commissioner of each State in which it is doing business, a copy of the group's annual financial statement submitted to the state in which the group is chartered as an insurance company.
This statement should be certified by an independent public accountant and contain a statement on loss and loss adjustment expense reserves made by -- A member of the American Academy of Actuaries, or
- A qualified loss reserve specialist.
