Question

Members of mid-south petroleum distributors, a trade group, had trouble obtaining affordable pollution liability insurance. the members formed a group captive that is exempt from many state laws that apply to other insurers. this group captive is called

Answer 1

The answer to the question is risk retention group.

Risk retention group is a state-chartered insurance company that insures commercial businesses and government entities against liability risks. This type of insurance is different from traditional insurance companies because they are exempted from state laws that regulate insurance and do not have to obtain a state license for every state in which it operates from.