Members of Mid-South Petroleum Distributors,a trade group,had trouble obtaining affordable pollution liability insurance.The members formed a group captive that is exempt from many state laws that apply to other insurers.This group captive is called a(n)
A)reinsurance pool.
B)Lloyd's association.
C)alien insurer.
D)risk retention group.

Question

Quizplus · Accepted Answer

The description matches that of a Risk Retention Group (RRG), which is a group captive formed by members of the same industry or profession with similar risks. RRGs are exempt from certain state insurance laws and regulations but are subject to federal regulations. They provide liability insurance to their members.

Members of Mid-South Petroleum Distributors,a Trade Group,had Trouble Obtaining Affordable