Q: What exactly is a Risk Purchasing Group and how does it differ from a Risk Retention Group?
A: Under the Liability Risk Retention Act of 1986, a Purchasing Group is any group of similar businesses who share common risk characteristics and who band together to purchase liability insurance. There are legal requirements as to how the group formulates itself, but the goal of joint insurance buying is sufficient reason for its existence.  Risk Purchasing Groups purchase insurance coverage from insurance carriers.  Risk Retention Groups provide liability insurance and act as and are treated as insurance companies with capital requirements.  

Q: How do we know a Purchasing Group or Retention Group is permitted in our client's state(s)?
A: Our Groups are registered in every state where we have insureds participating. Our Compliance Department maintains current information about PG and RRG filing requirements and handles all necessary paperwork on behalf of our Groups.

Q: Does the Umbrella Program require that all participants share the Program's aggregate limit?
A: No. This is "disinformation" which we commonly hear. As long as your client's primary Commercial Liability coverage has a per location limit, which we require, our Umbrella Program will follow form - right up to the full excess limit for each location.

Q: If one member of the Purchasing Group fails to pay their premium, will the policy be cancelled?
A: Non-payment of premium will result in the individual insured's coverage being cancelled, not the entire group's.

Q: Could a large claim made by another insured lead to cancellation of my coverage?
A: No, your coverage wouldn't be affected. 

Q: How can we get more information about the programs Distinguished has to offer?
A: We thought you'd never ask! Call or email Carla Vel, President and Chief Operating Officer at 212-297-3102 or cvel@distinguished.com