Questions and Answers about the
NASW Risk Retention Group (RRG)
What is the NASW RRG?
For the past several years, NASW and NASW Assurance Services have explored a range of options to improve the professional liability offering, and determined that a Risk Retention Group (RRG) provided the best protection for NASW members. The NASW-Endorsed Professional Liability Insurance Program is now going to be structured as an RRG – a liability insurance company that is owned by its members.
The NASW Risk Retention Group (RRG) is an insurance company authorized by federal law. It is not self insurance. The company is chartered in the District of Columbia and regulated by its Department of Insurance, Securities and Banking, which required it to have sufficient capital and reserves before it could be authorized to write insurance. Additionally, the NASW RRG is extensively reinsured and financially backed by Lloyd's, London, known worldwide for its excellence in insurance and rated "A" for its financial security and stability.
RRG's have been in place since 1986, when Congress passed the Liability Risk Retention Act. In fact there are hundreds of RRGs which provide liability coverage to doctors, lawyers, educators and other professionals.
The NASW RRG is an insurance company that meets all regulatory requirements of insurance regulators and is registered in all states, so there should be no issue with the acceptance of insurance certificates. Policy holders are issued an insurance policy and certificate.
Will my policy be accepted by managed care companies?
Risk Retention Groups are commonly used for providing professional malpractice insurance and widely accepted by all types of managed care and allied health organizations. If any member has a question about a specific managed care company accepting the NASW-Endorsed Program, please contact NASW Assurance Services and let us know so that we can address it.
What are the benefits of NASW RRG to members?
The NASW-Endorsed Professional Liability Insurance Program is exclusively designed for the benefit of its policyholders - NASW insureds, and the benefits to members are many:
- The program is overseen by the ASI Board of Directors, comprised of social workers and association insurance experts with members' needs in mind. Instead of working on behalf of corporate shareholders, NASW Assurance Services works to serve you and the social work community. They manage the program to keep costs and premiums low, and to ensure that members receive excellent, caring customer service.
- The finances and operations of our NASW-Endorsed Program are fully transparent. Unlike many insurance companies that focus on creating profits for corporate shareholders, our goals are to control costs, keep premiums low, pay program expenses and then reinvest resources generated by the RRG in the program and its policyholders, in NASW members and to advance the social work profession.
- Unlike many insurance companies, the NASW RRG will not invest in risky business ventures which created serious financial difficulties for many of those companies.
- This kind of insurance company will enable NASW and NASW Assurance Services to have much greater control and flexibility over how the professional liability program is structured. Policyholders can enjoy quick improvements to the professional liability program; for example, we will no longer have to file program changes in all 50 states for approval.
- And perhaps most importantly, only members participating in the NASW-Endorsed Program will continue to receive the support and advocacy on behalf of members should they be unfairly denied coverage or renewal.
Is the NASW RRG covered under state guarantee funds?
The NASW RRG is a federally authorized program regulated by the DC Department of Insurance, Securities and Banking and is exempt from state guarantee funds. The program has strong, stable backing from Lloyd's, London, known for its 300+ year track record of paying every valid policyholder claim it ever received. Lloyd's, London is one of the world's largest insurers of professional liability, and is A-rated for financial stability and security by A.M. Best. Lloyd's was chosen to reinsure the NASW-Endorsed Program because of its extensive experience with programs such as this.
Lloyd's, London is bound by contract to this program, and the necessary monies to pay all potential future claims are set aside just as they are with any insurer. The NASW RRG was required to have sufficient capital and reserves before it could be authorized to write insurance by the regulators that oversee it. Members will not be liable for losses due to any reason.