Healthcare Professional Long Term Care Risk Retention Group, Inc. (HPLTC)
It is a company that provides professional and general liability insurance to senior living facilities across the country.
HPLTC is a type of alternative risk transfer (ART) vehicle known as a risk retention group (RRG).
In this article, we will review what HPLTC does, how it differs from other insurance options, and what are the benefits and challenges of joining an RRG.
What does a Risk Retention Group do?
A risk retention group (RRG) is a state-chartered insurance company that insures commercial businesses and government entities against liability risks.
RRGs were created by the federal Liability Risk Retention Act of 1986 to provide liability insurance coverage to businesses that are similar or related in terms of their risk profile.
The RRG model provides greater control and flexibility to its members compared to traditional insurance companies.
RRGs are owned by their members, who are also their policyholders, and they can operate in multiple states without having to obtain separate licenses.
RRGs can write all types of liability insurance, except for workers’ compensation, but they cannot write property insurance.
What does the RRG stand for?
The RRG stands for Risk Retention Group, which is the name of the legal entity that HPLTC operates under.
The RRG is also the acronym that is commonly used to refer to this type of insurance company.
What is the difference between captive and RRG?
A captive insurance company is another form of ART vehicle that is owned by its insureds and provides coverage for their risks.
Captives can be domiciled anywhere in the world, while RRGs can only be domiciled in the United States.
They can write the full range of property and casualty coverages, while RRGs can only write liability coverages.
They May require a fronting insurer to do business across state lines, while RRGs do not need a fronting insurer
Captives may have tax advantages over RRGs, depending on the domicile and structure of the captive.
What is risk retention in health insurance?
Risk retention in health insurance is the decision to take responsibility for a portion of the health care costs, rather than transferring them to an insurance company.
Risk-retention can be done by individuals or organizations, and it can reduce insurance premiums
Risk-retention can take various forms, such as self-insurance, high-deductible plans, health savings accounts, or health reimbursement arrangements.
Healthcare professional long-term Care Risk Retention Group Inc. reviews
HPLTC is a relatively new company, founded in 2018, and it has not received many reviews from its members or the public.
However, based on the information available on its website and other sources, we can highlight some of the potential benefits and challenges of joining HPLTC as an RRG.
- Some of the benefits of joining HPLTC are:
Customized insurance solutions tailored to the specific needs of senior living facilities.
Stable and affordable premiums that reflect the risk profile and loss experience of the members.
Vigorous claims defense and risk management services that aim to protect the reputation and assets of the members.
Access to reinsurance markets and financial strength ratings that enhance the security and credibility of the RRG.
Member ownership and governance allow the members to have a voice and a stake in the RRG’s operations and performance.
- Some of the challenges of joining HPLTC are:
Limited coverage options exclude property insurance and workers’ compensation insurance
Regulatory compliance and reporting requirements vary from state to state and may impose additional costs
Lack of state guaranty fund protection may expose the members to the risk of losing their coverage
Potential tax implications that may affect the deductibility and taxation of the premiums and dividends
Conclusion
HPLTC is a company that offers professional and general liability insurance to senior living facilities through an RRG model.
HPLTC has some advantages over traditional insurance companies, such as customized coverage, stable premiums
However, HPLTC also has some limitations and risks, such as restricted coverage, regulatory compliance
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