Risk Retention Group
(4)“risk retention group” means any corporation or other limited liability association— (A)whose primary activity consists of assuming, and spreading all, or any portion, of the liability exposure of its group members; (B)which is organized for the primary purpose of conducting the activity described under subparagraph (A); (C)which— (i)is chartered or licensed as a liability insurance company under the laws of a State and authorized to engage in the business of insurance under the laws of such State; or (ii)before, was chartered or licensed and authorized to engage in the business of insurance under the laws of Bermuda or the Cayman Islands and, before such date, had certified to the insurance commissioner of at least one State that it satisfied the capitalization requirements of such State, except that any such group shall be considered to be a risk retention group only if it has been engaged in business continuously since such date and only for the purpose of continuing to provide insurance to cover product liability or completed operations liability (as such terms were defined in this section before); (D)which does not exclude any person from membership in the group solely to provide for members of such a group a competitive advantage over such a person; (E)which— (i)has as its owners only persons who comprise the membership of the risk retention group and who are provided insurance by such group; or (ii)has as its sole owner an organization which has as— (I)its members only persons who comprise the membership of the risk retention group; and (II)its owners only persons who comprise the membership of the risk retention group and who are provided insurance by such group; (F)whose members are engaged in businesses or activities similar or related with respect to the liability to which such members are exposed by virtue of any related, similar, or common business, trade, product, services, premises, or operations; (G)whose activities do not include the provision of insurance other than— (i)liability insurance for assuming and spreading all or any portion of the similar or related liability exposure of its group members; and (ii)reinsurance with respect to the similar or related liability exposure of any other risk retention group (or any member of such other group) which is engaged in businesses or activities so that such group (or member) meets the requirement described in subparagraph (F) for membership in the risk retention group which provides such reinsurance; and (H)the name of which includes the phrase “Risk Retention Group”.1