Carrier
The insurer bears the insurance risk under the policy. Identify the legal insurer, not just a program brand.
Read about carriersInsurance market guide
Risk Retention Group.
A risk retention group is a liability insurance company owned by its insured members, which share similar insurance needs. It is domiciled in one state and may register to operate in other states under the federal Liability Risk Retention Act. Membership, coverage, regulation, financial structure, and guaranty-fund treatment require careful review.
Transaction role
Follow the function, not the label.
The member-owned insurer bears eligible commercial liability risks for its defined membership group.
Confirm the responsibility
Ask who can quote, who can bind, who issues the policy and who handles service. Those responsibilities depend on the specific agreement and program, not just the company label.
Practical broker checklist
Questions to resolve before comparing an RRG option
- Confirm the applicant qualifies for the group's membership and the liability coverage being considered.
- Obtain and review the financial, membership, assessment and guaranty-fund disclosures applicable to the proposal.
- Confirm the licensed distribution route and relevant state requirements before treating an application as ready to place.
An illustrative account
A business resembles existing members but operates a second service line. Ask whether that activity fits the membership and coverage criteria instead of assuming eligibility from the main business description.
This is a hypothetical preparation example, not an actual placement or a promise of coverage.
Compare the related admitted insurance carrier roleThe roles in one placement
Who does what?
MGA or MGU
A delegated underwriting business may evaluate and accept accounts within the insurer's agreed authority. The labels overlap; the agreement determines the scope.
Read about MGAsRead about MGUsWholesale broker
The intermediary helps the retail agent prepare and place the account with an underwriting market. A brokerage role alone does not confer underwriting authority.
Read about wholesale brokersEvidence
Signals worth verifying.
Authority signals
- Domiciliary license
- Registration in the relevant state
- Defined membership and liability coverage
- Approved distribution and producer route
Access questions
- Who may become an insured member?
- Which liability coverages and states are authorized?
- What financial, assessment, and guaranty-fund disclosures apply?
- What appointment or producer route authorizes the transaction?
False confidence
What does not prove access.
- The RRG name alone
- Registration in a different state
- Eligibility for a different member class
- A public application without producer authorization
Primary reference: NAIC risk retention group overview
Next action
Discuss the account with Hedge.
Start with the operations, location, requested coverage and the facts making placement difficult. Check appetite or send the account through Hedge's secure submission process for review.