Question

Which of the following is NOT one of Indiana's rules for a risk retention group?

A. The group must be licensed as a property and casualty insurance company.
B. The group must inform policyholders that it is not backed by state Guaranty Funds.
C. The group's name must include the words "risk retention group."
D. The group's members must have partial ownership of the group and have insurance through the group.

Answer 1

Option D is NOT one of Indiana's rules for a risk retention group.

Step-by-step explanation:

Among the options given, option D is NOT one of Indiana's rules for a risk retention group. This is because the statement in option D conflicts with the concept of a risk retention group.

A risk retention group is a type of insurance company where the members have full ownership of the group, rather than partial ownership, and they obtain insurance coverage through the group.

Option D suggests that the members must have partial ownership and have insurance through the group, which is incorrect.