Question

What is the main purpose of a Risk Retention Group (RRG)?

a.

To provide traditional insurance coverage

b.

To share retained risks among group members

c.

To offer coverage for natural disasters

d.

To eliminate the need for risk financing techniques

Posted under IC85 Reinsurance Management

Answer: (b).To share retained risks among group members Explanation:A Risk Retention Group (RRG) is a specialized type of insurance organization. Its main purpose is to allow member insurance companies to share retained risks among themselves. RRGs are formed by insurance companies banding together as self-insurers to handle liability insurance. The primary objective is to provide coverage for specific risks that may not be readily available in the traditional insurance market.

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Q. What is the main purpose of a Risk Retention Group (RRG)?
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