RRGS are state chartered and are exempt from having to obtain a state license in every state in which they operate, and also are exempt from state laws that regulate insurance. They are mutual companies, meaning that they are owned by the members of the group. Members of an RRG must be engaged in similar activities or related with respect to liability exposures by virtue of any related or common business exposure, trade, product, service or premise.
EXAMPLE:
• Policies can be owned by a group of individuals, such as assisted living, retirement housing, etc and they can also be purchased by other retirement villages.