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Risk Retention Act

The Product Liability Risk Retention Act of 1981 sought to improve the availability and lower the cost of product liability insurance to businessmen and municipalities across the United States by allowing similar businesses to form risk retention groups (RRGs) that could self-insure to cover product liability exposures. The Risk Retention Act (RRA) was a response to a hardening insurance market in the 1970s and the inability of some businesses (primarily medical) to obtain insurance in the marketplace. The RRA reflects a decision that continues to evolve as to who bears the risks in society and whether insurance risk should be legislated by the states or the federal government.

In 1986, the Product Liability Risk Retention Act was revised, expanded, and renamed simply the Liability Risk Retention ...

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