In response to the complex liability challenges of the 1980s, Congress introduced the Liability Risk Retention Act (LRRA) in 1986, sparking a transformation in the insurance landscape.
The LRRA Act offered an innovative solution to the era’s pressing issues, which included limited product availability and exorbitant insurance rates.
Under this legislation, similar liability exposure groups were granted the power to create their own insurer, known as a Risk Retention Group (RRG), to meet their coverage needs.
In the realm of insurance, a Risk Retention Group operates as a liability insurance company that is collectively owned by its members.
In our case, ABIC RRG, this ownership extends through the American Builders Association.
This article delves into the vital role ABIC RRG plays in providing tailored and efficient liability solutions in accordance with the LRRA Act of 1986.