Section G Regulation of Insurance: NAIC RRG

Question 1

Define a RRG

Answer 1

Structure that is set up by a group of companies (members) to provide insurance to the group

Question 2

What types of insurance can RRGs write

Answer 2

Various types of commercial liability insurance

Question 3

List an advantage of RRGs over pure captives

Answer 3

RRGs May write directly in any states without obtaining a license

Question 4

Four differences between the regulation of RRGs and traditional insurers

Answer 4

🟣 Many RRGs file their financial statements using GAAP accounting

🟣 Few RRGs (if any) are required to submit rate and form filings. Instead, rates are generally based on an actuarial analysis of the membership

🟣 RRGs are able to manuscript the policies to suit the needs of the members

🟣 The LRRA forbids the RRGs from participating in state guaranty funds

Question 5

Two main goals of Risk Retention Group Task Force:

Answer 5

1. Monitors the work of other NAIC bodies that is related to RRGs, and determines whether to include this in the accreditation standards for RRGs
2. Monitors the impact of the above to determine if additional action is necessary