Question

Which concept originated in the US with the passing of the Liability Risk Retention Act, 1981?

a.

Self insurance

b.

Risk Retention Groups

c.

Pools

d.

Captives

Answer: (b).Risk Retention Groups Explanation:Risk Retention Groups (RRGs) originated in the US with the passing of the Liability Risk Retention Act in 1981. RRGs are corporations owned and operated by insurance companies that band together as self-insurers. They form an organization that is chartered and licensed as an insurer in at least one state to handle liability insurance. RRGs address gaps in liability coverage for their members, such as medical malpractice insurance.

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Q. Which concept originated in the US with the passing of the Liability Risk Retention Act, 1981?

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