MICA Risk Retention Group
MICA strives to respond to the needs of its members. Medical groups are growing and expanding into areas outside of the states in which MICA is admitted. In order to have the flexibility to remain the carrier of choice for these evolving groups - without undergoing the long and often rigorous task of becoming licensed as an admitted carrier in all states, MICA formed a sponsored Risk Retention Group (RRG).
MICA RRG was formed under the Federal Liability Risk Retention Act of 1986 and is domiciled in the District of Columbia. It will enable physicians and their related groups, clinics and facilities access to the financial strength and outstanding services provided by MICA as they affiliate with out-of-state medical groups or as they grow their own presence beyond the states in which MICA is currently licensed. Sponsorship of MICA RRG will allow MICA to respond quickly to the changing needs of its members wherever they go in the U.S.
MICA RRG is a mutual company and is owned by the members it insures. Because it is managed by MICA, it retains MICA’s focus on service to its members, and because it is reinsured by MICA, its members will have the safety provided by MICA’s experience and financial resources. And, due to this strategic alliance with MICA, MICA RRG has been awarded an A (excellent) financial strength rating by A.M. Best Company.
What is an RRG?
An RRG is any corporation or other limited liability association whose primary activity consists of assuming and spreading all, or any portion of the liability exposure to its group members and who has as its owners, only persons who comprise the membership of the RRG and who are provided insurance by such group. The Federal Liability Risk Retention Act permits RRGs to provide commercial liability insurance for its members and largely exempts them from state insurance laws other than the laws of their domiciliary and licensing state. While RRGs eliminate many excess filing and licensing fees, its members are not backed by a state guaranty fund if the company becomes impaired.
How Does This Affect Current MICA Policyholders?
Current MICA policyholders who have a single-state exposure, or who have a multi-state exposure confined to the states in which MICA is licensed are not affected by the formation of the sponsored RRG. However, if your practice exposure expands beyond the states in which MICA is licensed, please contact us to explore your options with MICA RRG.
For more information:
If you would like more information on MICA RRG, please contact Timothy Friers, Vice President & Chief Underwriting Officer at 602.956.5276 or via email at RRGInfo@mica-insurance.com.