The General Accounting Office has told Congress that a loose law allows risk retention groups providing commercial liability insurance to operate in ways that do not always protect their solvency and insureds' best interests.
In a report on the nation's rapidly growing RRGs==which number nearly 200== the GAO said that common regulatory standards and greater protections for group members is needed as most operate from six states where there is minimal control and there is a risk they could go insolvent.
Reacting to the report, the National Risk Retention Association noted GAO's positive comments about the role of RRGs in creating availability of insurance, and that some of the negative findings involved subjective views and a dated event.
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