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The Product Liability Risk Retention Act of 1981 sought to improve the availability and cost of product liability insurance to businessmen and municipalities across the United States by allowing similar businesses to form risk retention groups (RRGs) who could self-insure to cover product liability exposures. The Risk Retention Act reflects social organization and a decision that continues to evolve as to who bears the risks in society.

In 1986, the Product Liability Risk Retention Act was revised, expanded, and renamed the Risk Retention Act. The revised act established a new entity by which insurance buyers could purchase liability insurance: purchasing groups (PGs). A PG can be any group of persons with similar or related liability risks who form an organization to purchase liability insurance on a ...

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