Question

Risk Retention Group (RRG) and Risk Purchasing Groups (RPG) are types of _______.

Option 1: Insurance policies
Option 2: Financial derivatives
Option 3: Risk management strategies
Option 4: Government regulations

Answer 1

Risk Retention Groups (RRG) and Risk Purchasing Groups (RPG) are types of insurance policies.

Step-by-step explanation:

Risk Retention Groups (RRG) and Risk Purchasing Groups (RPG) are types of insurance policies. These groups are formed by businesses or professionals who have similar insurance needs and collectively purchase insurance coverage.

RRGs and RPGs are specialized forms of insurance entities. They are associated with liability insurance and are structured to provide insurance coverage for specific risks. RRGs are typically formed by similar businesses or organizations to self-insure and retain risks within the group, while RPGs allow multiple businesses or entities to collectively purchase insurance coverage. Both are examples of alternative risk transfer mechanisms within the insurance industry.