For Members | Frequently Asked Questions


What is a risk retention group (RRG)?
A risk retention group (RRG) is a liability insurance company that is owned by its members. In 1986, Congress passed the Liability Risk Retention Act (LRRA) to help professionals obtain liability insurance, which had become either unaffordable or unavailable due to the "liability crisis" in the United States. In passing the LRRA, Congress provided insurance buyers with a marketplace solution, enabling them to have greater control of their liability insurance programs. The LRRA requires that members be homogeneous, i.e. engaged in similar businesses or activities that expose them to similar liabilities. The type of insurance coverage permitted is set forth in the definition of "liability," which includes all types of third party liability, including medical malpractice. Once licensed by its state of domicile, an RRG can insure members in all states. Because the LRRA is a federal law, it preempts state regulation, making it much easier for RRGs to operate nationally. As insurance companies, RRGs retain risk. AMS RRG is licensed and domiciled in the State of Arizona.
As insurance companies owned by their members, some of the key advantages RRGs offer relate to the control members obtain over their liability programs. This control often translates into lower rates, broader coverage, effective loss control/risk management programs, participation by RRG members in favorable loss experience, access to reinsurance markets, and stability of coverage, notwithstanding insurance market cycles.
Source: Risk Retention Reporter
 
What are the policy limits?
AMS RRG offers claims-made coverage up to (& including) $1,000,000 per event and $3,000,000 aggregate.  Higher limits may be available on request.
 
Will I have to purchase separate tail coverage prior to joining AMS RRG?
Typically, we recommend that you review the options available to you: either purchase tail coverage from your current carrier and join AMS RRG on a first year claims made basis, or in most cases, we offer prior acts coverage, commonly referred to as "nose" coverage.
 
Is Extended Reporting Coverage, or “tail” coverage, available if I leave AMS RRG?
If you decide to cancel your policy through AMS RRG, tail coverage is available at an additional premium based upon your retroactive date of coverage.  Physicians who are retiring may qualify for cost reductions when purchasing this extended reporting period coverage.
 
What is the expected premium to the member physicians?
Premiums are based upon traditional underwriting principles, which include such factors as the medical specialty, type and scope of practice, geographic area, and prior experiences. Additionally, underwriting criteria that are utilized by AMS RRG focus on the physician's clinical practice and the opportunity to provide risk reduction initiatives.
  
Does the company have reputable reinsurance support?
AMS RRG supports and extends its own capital base through the purchase of excess of loss reinsurance under the supervision of the Arizona Department of Insurance. First negotiated after the company’s formation in the spring of 2003, AMS RRG enjoys the support of leading reinsurers. All reinsurers maintain high ratings from the major rating agencies and employ specialized underwriters who are very familiar with both the medical malpractice marketplace in the United States and AMS RRG’s business activities. The reinsurance provides excellent financial protection for AMS RRG’s policy holders.
  
Who will be responsible for claims administration?
Claims administration is provided through our experienced in-house counsel, the Chief Medical Officer, and Specialty Medical Directors.