RRG Mutual

August 05, 2014


Answered by:

Kirk D. Mooneyham, CPA
Managing Director - Captive Management Services Wilmington Trust SP Services, Inc.
6143 S. Willow Drive, Suite 410, Greenwood Village, Colorado  80111
[email protected] ( 303.256.7106 | Cell  303.250.8243

A mutual insurance company is owned entirely by the policyholders.  No shares of stock are issued by a mutual insurance company, and dividends are distributed in the form of policyholder distributions.  A mutual insurance company is not limited to the types of insurance that may be written by the entity, and is otherwise regulated like any other traditionally admitted insurance company.

A risk retention group is a type of insurance entity that was created under the Liability Risk Retention Act of 1986.  The Act governs the structure and type of business that a risk retention group can operate.  A risk retention group is limited to insuring owners of the entity.  Risk retention groups are also limited only to writing liability insurance.  Because of their closely held nature, risk retention groups are subject to more limited state regulations.  However, risk retention groups are held completely responsible for the losses of their group, and can not access any state guarantee pools if the entity becomes insolvent.