Risk Retention Groups

By NAIC Center for Insurance Policy and Research · National Association of Insurance Commissioners · 2023

Study guide: Exam 6U

A web page of the NAIC's Center for Insurance Policy and Research on risk retention groups (RRGs), the member-owned liability insurers formed under the federal Liability Risk Retention Act of 1986 and state law. It describes how they operate across states, how they are regulated and how they differ from traditional insurers, and summarizes NAIC work on their regulation.

On the syllabus

• Exam 6U — objective A3; the NAIC Center for Insurance Policy and Research page "Risk Retention Groups," updated February 7, 2023 (as the content outline states it)

Background

• Risk retention groups are member-owned liability insurers formed under the federal Liability Risk Retention Act of 1986 and state law, and they operate in multiple states.
• They are regulated under NAIC accreditation standards and differ from traditional insurers: they report under GAAP, have limited rate and form filings, and have no access to state guaranty funds.

Actions

• The section summarizes NAIC work on RRG regulation, including GAO studies, the application of reinsurance model law revisions to RRGs, a best practices document and a registration form.

Sources

• Risk Retention Groups (NAIC Center for Insurance Policy and Research) — the document: the Background and Actions sections; the page as read here is marked last updated 10/13/2025, later than the February 7, 2023 version the syllabus cites, so its wording and the Actions section in particular may differ from that version
• CAS Exam 6U Content Outline, Fall 2026 — the citation (updated February 7, 2023) and the objective it serves