What does Risk Retention Act of 1986 mean? Read on to discover the definition & meaning of the term Risk Retention Act of 1986 - to help you better understand the language used in insurance policies.
Risk Retention Act of 1986
Federal legislation passed in 1986 that authorized the formation of purchasing groups and group self-insurance programs for certain types of liability exposures. According to the Act, members of risk purchasing groups (RPGs) and risk retention groups (RRGs) must be engaged in similar or related businesses or activities.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
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