Types of Captives

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Risk Retention Groups: An Important Segment of the Captive Industry

Risk retention groups (RRGs) comprise only 3 percent of the roughly 7,000 captive insurers now operating. This relatively small number of RRGs hides the importance of this segment of the captive industry. Many RRGs are a vital source of coverage for hundreds—even thousands—of their policyholder-owners.
October 03, 2018 Read More
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Latest Risk Retention Group Expansion Effort Faces Slim Chances

A new legislative effort is being launched to expand the coverages that risk retention groups (RRGs) can offer to their policyholders, but that drive has yet to garner broad congressional support. Under the current expansion proposal, H.R. 6292, RRGs could, if certain conditions were met, also offer property coverage.
August 02, 2018 Read More
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PCIC Risk Retention Group Wins LRRA Preemption in New York

A recent New York court of appeals ruling found that Preferred Contractors Insurance Company Risk Retention Group, LLC (PCIC), is not subject to New York insurance law for an insurer's failure to provide timely disclaimer or denial notice. The court ruled that compliance with New York law is preempted by the federal Liability Risk Retention Act (LRRA).
May 24, 2018 Read More
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OOIDA Risk Retention Group Wins LRRA Preemption in Georgia

On May 7, 2018, in a unanimous decision, the Georgia Supreme Court affirmed in Reis v. OOIDA Risk Retention Group, Inc., that the Liability Risk Retention Act (LRRA) preempts state insurance laws that regulate the business of foreign risk retention groups in Georgia.
May 11, 2018 Read More
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Risk Retention Groups Continue To Grow in Size and Importance

Even in a soft market, risk retention groups (RRGs) have grown significantly and continue to play a vital role providing coverage to their tens of thousands of policyholder-owners. At the end of March 2018, 228 RRGs were doing business, up from just 100 in 2003, according to the Risk Retention Reporter.
April 16, 2018 Read More
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OOIDA Risk Retention Group Battles for LRRA Preemption in Georgia

The Georgia Supreme Court will rule on the Reis et al. v. OOIDA Risk Retention Group, Inc. case after the Georgia State Court of Appeals transferred the case to the Georgia high court on the constitutional issue of federal preemption. Frequently, these cases center on whether the federal Liability Risk Retention Act of 1986 (LRRA) preempts state law.
April 09, 2018 Read More
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Fight To Protect Restoration RRG and Other RRGs in Wisconsin Continues

In what the National Risk Retention Association says is a win, on January 12, 2018, in a case involving Restoration Risk Retention Group (Restoration RRG), the US Court of Appeals for the Seventh Circuit vacated and remanded the case back to the US District Court for the Western District of Wisconsin.
March 12, 2018 Read More
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Contrasting Risk Retention Groups and Captive Insurance Companies

It is said that while many risk retention groups (RRGs) are licensed under states' captive insurance company laws, not all captives are RRGs. Learn about the key contrasts of RRGs and other types of captives, including the number licensed, scope of coverage, and interest in formation.
November 20, 2017 Read More
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Risk Retention Group Expansion: A Modest Yet Critical Proposal

A new drive is about to begin aimed at convincing Congress to pass legislation to expand the coverages risk retention groups can provide to member-owners. The legislation is expected to be similar to a measure introduced during the last congressional session that would have allowed certain risk retention groups to cover policyholders' property risks.
July 31, 2017 Read More
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Risk Retention Groups: A Basic Overview

A risk retention group (RRG) is a captive insurance company formed pursuant to the federal Liability Risk Retention Act. This article discusses some of the basics of RRGs, including differences between RRGs and other types of captives.
April 12, 2017 Read More
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The 3 Categories of Risk Retention Groups

A panel discussion on corporate governance of risk retention groups (RRGs) at the 2017 Captive Insurance Companies Association (CICA) Conference provided a useful way to categorize RRGs. RRGs can be divided into one of three categories based on whether there is a sponsor and, if so, the type of sponsor.
March 28, 2017 Read More
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NRRA Files Amicus Brief in Restoration RRG Appeal

The National Risk Retention Association filed an amicus curiae brief in support of Restoration RRG in its recent court appeal, challenging the Wisconsin Department of Safety and Professional Services for discrimination against risk retention groups.
March 21, 2017 Read More
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831(b) Micro-Captive Challenges

Currently, there is great uncertainty as to how the Internal Revenue Service's challenges to micro-captives will be resolved. With this in mind, a panel of captive insurance experts discussed ways to mitigate the challenges during last month's 2017 World Captive Forum.
February 08, 2017 Read More
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Cells and Series Captives Growth Update

There has been more than 16 percent growth in cell and series captives in the eight domiciles served by Strategic Risk Solutions. This article reviews the numbers in the domiciles.
February 06, 2017 Read More
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Group Captives, Cell Captives, and Risk Pooling Arrangements Guide

Multiple participant captive insurance companies can take a number of forms, such as group captives and cell captives. Learn the basics of these types of captives as well as how they sometimes share risks for various reasons.
February 01, 2017 Read More
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Montana RRG CareConcepts Is in Liquidation

On May 23, 2016, the Office of the Montana State Auditor, Commissioner of Securities and Insurance (CSI), suspended the license of CareConcepts Insurance, Inc., a risk retention group (RRG), allowing the Insurance Department to take control and supervise CareConcepts. On August 8, 2016, the Montana CSI issued a court order, signed by a Montana District Court Judge, to commence liquidation of CareConcepts. On August 10, 2016, CareConcepts was placed into liquidation. Michael J. FitzGibbons, president of FitzGibbons and Company, Inc., was appointed as special deputy liquidator on August 22. Claims against CareConcepts have a deadline of March 31, 2017.
November 08, 2016 Read More
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Rehearing Requested for LRRA Preemption Ninth Circuit Court Decision

The U.S. Court of Appeals for the Ninth Circuit upheld the federal Liability Risk Retention Act (LRRA) preemption status in September 2016 in Attorneys Liability Protection Society, Inc. v. Ingaldson Fitzgerald, P.C., Nos. 13–35115, 13–35172, 2016 U.S. App. LEXIS 17396 (9th Cir. 2016).
October 28, 2016 Read More
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NRRA Advocacy for RRGs under the Liability Risk Retention Act

In 1986, Congress passed the Liability Risk Retention Act (LRRA). This Act allows homogeneous groups to form a risk retention group (RRG) in order to write liability insurance coverage. Its policyholders are the owners.
October 13, 2016 Read More
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Offshore Group Captive Insurance Success Achieved by Raffles Insurance Limited

A.M. Best recently affirmed the Financial Strength Rating of A- (Excellent) of Raffles Insurance Limited, a group captive, according to an A.M. Best press release.
October 10, 2016 Read More
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Sunland Risk Retention Group, Inc., Rating and Organizational Structure Explored

Sunland Risk Retention Group, Inc., has recently earned a Demotech, Inc., Financial Stability Rating (FSR) of A, Exceptional.
September 28, 2016 Read More