▶ How many Risk Retention Groups are there in the U.S.?
Total number of RRG’s in the U.S. is estimated to be 250 as of July, 2010.
▶ What are the advantages of Risk Retention Groups?
As insurance companies owned by their members, some of the key advantages offered by risk retention groups (RRGs) to their members relate to the control members obtain over their liability programs. This control often translates into lower rates, broader coverage, effective loss control/risk management programs, participation by RRG members in favorable loss experience, access to reinsurance markets, and stability of coverage, notwithstanding insurance market cycles.
▶ What is the Liability Risk Retention Act?
The Liability Risk Retention Act (LRRA) is a federal law that was passed by Congress in 1986 to help U.S. businesses, professionals, and municipalities obtain liability insurance which had become either unaffordable or unavailable due to the “liability crisis” in the United States.
▶ What is a Risk Retention Group?
A risk retention group (RRG) is a liability insurance company that is owned by its members. Under the Liability Risk Retention Act (LRRA), RRGs must be domiciled in a state. Once licensed by its state of domicile, an RRG can insure members in all states. Because the LRRA is a federal law, it preempts state regulation, making it much easier for RRGs to operate nationally. As insurance companies, RRGs retain risk.
▶ How does NEXUS help me get the best price and coverage?
Very simply put – we have access to a number of medical professional liability insurance companies who have been and are actively doing business in the state of New York, all with full approval from the NY Department of Insurance. We know that helping you select the right coverage is critical to the operation of your practice or medical facility’s operation and we are dedicated to helping you save valuable time and money. In less than the time that it would take for you to personally apply for coverage from one company, we can submit your application to various professional liability insurance providers in New York. Our firm is small and therefore very efficient. Our sole focus is on the medical industry and we pride ourselves in our ability to find creative solutions to the myriad of complex risk/insurance challenges facing all medical practices.
Whether desired or not, the reality is that each and every year, it is necessary for physicians and other medical practitioners to go through the process of renewing and continuing their insurance coverage. At NEXUS we pride ourselves on being able to stay one step ahead of the game and we do not rest on our laurels. Leading up to your renewal NEXUS has been analyzing the New York insurance marketplace on a daily basis so that we are prepared each year to seek out the best markets. We fully realize that it is always possible that what was a competitive premium in last year’s insurance market may not be a competitive premium now. It is our job and mission to make sure you, our client, is provided with the best options each and every year.
▶ What are the benefits of using an independent professional liability insurance broker such as NEXUS ?
It is especially important in today’s litigious environment to have a broker working for you who has the capability and available resources to best serve your insurance needs. We know from experience that competition, more than any other factor, drives pricing. This holds true in all walks of life and business. When many insurance companies as possible compete for your business – you win!
Our primary function is to become your advocate in helping you find the most comprehensive coverage to suit your individual practice, group practice, or medical facility’s needs. As an independent broker, NEXUS does not have an allegiance to just one insurance company. Our primary allegiance is to help you, our prospective client, find the best combination of price and coverage protection for your medical practice.