Excerpt from Guide to RRGs and PGs

Besieged by pleas from business people and municipalities across the United States who were unable to obtain or afford liability insurance during the mid-1980’s, Congress responded by enacting amendments to the 1981 Product Liability Risk Retention Act. The new legislation, known as the Federal Liability Risk Retention Act of 1986 (LRRA), created two vehicles by which insurance buyers could more readily obtain liability insurance: risk retention groups (RRGs) and purchasing groups (PGs). This Guide compares and contrasts these two insurance vehicles, outlines the regulatory factors that make them attractive solutions, reviews the growth of the marketplace over the last three decades, and outlines the information that will let you decide if the vehicles are a good fit for your insurance needs.

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