2017 March Risk Retention Reporter Headlines and Article Excerpts

NRRA Supports RRG’s Ongoing Lawsuit in Wisconsin

The National Risk Retention Association has submitted an amicus curiae brief in support of Restoration Risk Retention Group, Inc. (Restoration) in its ongoing appeal of a lawsuit involving the Wisconsin Department of Safety and Professional Services. In particular, the brief takes issue with the district court’s use of Ophthalmic Mutual Ins. Co. v. Musser, a 1998 case, to decide against the RRG in a dispute over the interpretation of state law....

Dan Towle Announced as Next CICA President

The Captive Insurance Companies Association announced that Dan Towle will be stepping in as its new president effective April 24th. Towle will be replacing Dennis Harwick, who has held the position since January 2005. Harwick will stay on until the end of June to assist Towle in the new position and to assure a smooth transition....

Mental Health Risk Retention Group Celebrates 30 Years

For the Mental Health Risk Retention Group (MHRRG), a Vermont-domiciled RRG that insures nonprofit behavioral healthcare organizations, the mission is clear, according to President Nicholas Bozzo—providing a stable source of comprehensive liability insurance for members and improving the quality of care they provide through the development of loss prevention programs. And it’s something they’ve been doing for thirty years....

Risk Retention Roundup

This month two new risk retention groups were added to the Risk Retention Reporter listings and no RRGs were deleted taking the total number of RRGs up to 236. No new purchasing groups were added to the Risk Retention Reporter listings and no PGs were deleted, leaving the total number of PGs at 987....

Musser Ruling Affected RRG Prevalence in Wisconsin

A report put together by the Risk Retention Reporter found that Wisconsin had the lowest per resident volume of risk retention group premium in the country in 2015 and the lowest number of registered RRGs outside of Alaska, the most recent data available at the time of the report. The 1998 ruling in Ophthalmic Mutual Insurance Company v. Musser—which effectively barred Healthcare RRGs from doing business in Wisconsin and has played a prominent role in the ongoing legal case involving Restoration Risk Retention Group in the state—likely lowered the prevalence of RRGs in the state of Wisconsin....

Special Report: Data Addendum on RRG Activity in Wisconsin

The case involving Restoration RRG in Wisconsin has the potential to be a landmark ruling for the risk retention group industry. This month's special feature includes a Data Addendum on RRG activity in Wisconsin that provides some additional context on how RRG activity in Wisconsin is an outlier—through both tables and figures. Next month's issue will include a feature that provides an in-depth review of the Musser ruling....

RRG Ratings Roundup

A.M. Best has removed from under review with negative implications and has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer (Long-Term ICR) Credit rating of “a” assigned to Preferred Physicians Medical Risk Retention Group, a Mutual Insurance Company (PPM RRG). The outlook of the ratings remains negative. Late last year PPM RRG was acquired by the NORCAL Group, and A.M. Best concurrently affirmed the FSR of A (Excellent) and the Long-Term ICR of “a” assigned to members of the group....

2017 CICA Conference Highlights

This year’s annual CICA Conference addressed the theme of disruption head on with many sessions providing a template for how captive owners and risk retention group leadership can adapt to an ever-changing landscape. Topics ranged from the role of analytics in optimizing performance to disruptive technology; however the opening keynote speech and the RRG session on handling recent regulatory developments had significant relevance to the risk retention group industry....

RRGs, Captive Managers, and Others in the News

Security American Risk Retention Group (SARRG) has added a $50,000 limit of data breach coverage for its policyholders that is embedded in the general liability policy and will become active upon renewal. The policy covers theft or loss of personally identifiable information, failure to disclose a breach in a timely manner, and failure to administer an identity theft program/information disposal program that may be required by regulations and guidelines....