Question

    Insurance companies that band together as self-insurers

    and form an organization that is chartered and licensed as an insurer in at least one state to handle liability insurance is called?
    A Retention Correct Answer Incorrect Answer
    B Retrocession Correct Answer Incorrect Answer
    C Retrospective Rating Correct Answer Incorrect Answer
    D Risk Retention Groups Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Risk Retention Groups (RRGs) are liability insurance companies owned by its members. RRGs allow businesses with similar insurance needs to pool their risks and form an insurance company that they operate under state regulated guidelines.

    Practice Next
    More Insurance Awareness Questions
    ask-question