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Article: Using RRGs to fund stop-loss exposures in self-funded medical plans. (Another Perspective).(Risk Retention Group)
- Article from:
- National Underwriter Property & Casualty-Risk & Benefits Management
- Article date:
- April 7, 2003
- Author:
CopyrightCOPYRIGHT 2003 The National Underwriter Company. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The Liability Risk Retention Act, enacted during the hard market of the 1980's, responded to the "liability crisis" confronting commercial insurance buyers faced with unavailability and unaffordability of liability insurance.
After the legislation passed, some contended that only liability arising from tort exposures could be insured by risk retention groups and purchasing groups, while others argued that Congress fully intended liability exposures stemming from contractual agreements to be included in the Act's definition of "liability."
The issue has become largely moot, as currently some 20 percent of operational RRGs provide contractual liability for ...