RISK RETENTION GROUP (RRG)

An insurer formed under the laws of any U.S. state, whose primary activity is assuming and spreading all liability coverages except workers compensation and personal risk liability (for example, private passenger auto). An RRG must be owned by its policyholders, and its policyholders must be insured by the group. An RRG must be licensed as an insurer under the laws of a state and is subject to regulation under that state’s laws.