Table of Contents - A Practical Guide to Purchasing Groups

A Practical Guide to Purchasing Groups (order form)

Table of Contents of A Practical Guide to Purchasing Groups

Chapters:
1	Introduction
2	Comparison of Risk Retention Groups and Purchasing Groups
3	Advantages and Challenges of Purchasing Groups
4	Growth and Development of Purchasing Groups
5	Formation of Purchasing Groups
6	Operation of Purchasing Groups
7	Regulation of Purchasing Groups
8	Purchasing Group Insurers
9	Agents and Brokers
	Appendices

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Acknowledgments
Author's Foreword
About the Author

Chapter One Introduction
	Background of Liability Risk Retention Act
		Liability crisis
			Hard market turns soft
		Preemption of state regulation
			Scope of preemption
			State laws preempted
			Expansion of "liability" definition
			Exclusion of workers compensation property and personal lines
			Summary of Liability Risk Retention Act
	Overview of U.S. Insurance Regulation
		State regulation of insurance
			Early U.S. Supreme Court decision
			McCarran Ferguson Act
			Role of NAIC
		State enforcement of federal law
	Proposed Expansion of Liability Risk Retention Act
		Inclusion of property
			Only liability currently
			Benefit for PGs and Insurers
		Support and opposition
			Congressional level status
			Awaiting GAO report

Chapter Two Comparison of Risk Retention Groups and Purchasing Groups
	Introduction
	Legislative Requirements
		Similarities
			Size of group
			Homogeneity requirement
			Type of coverage permitted
		Differences
			Retention of risk
			Purpose of group
			Legal structure
			Capital requirements
			Reinsurance
			Plan of operation
			Loss data
			Policy issuance
			Deductibles
			Guaranty fund protection
			Use of agents and brokers
			Naming requirements
	Regulation of Risk Retention Groups and Purchasing Groups
		Scope of preemption
		Role of the domiciliary state
		Registration with nondomiciliary states

Chapter Three Advantages and Challenges of Purchasing Groups
	Introduction
	Advantages to Insurance Buyers
		Legislative basis
		Key benefits
			Favorable rates and tailor-made coverage
			Ownership of loss experience
			Reward for good experience
			Risk management/ loss prevention
			Long-term insurer commitment
	Advantages to Insurers
		Legislative basis
		Competitive advantage
			Market specialist
			Mass marketing
		Preemption of state regulation
			Fictitious group laws
			Countersignature laws
			Rate and form advantages
			Speed to market
			Greater profitability
	Advantages to Agents and Brokers
		Legislative basis
		Value-added service
		Role expansion
		Expansion of market
		Greater profitability
	Challenges
		Regulatory red tape
		Restricted to liability
		Complex business arrangements
		Market conditions
			Small PG vulnerability
			New insurers of PGs
			Business areas

Chapter Four Growth and Development of Purchasing Groups
	Introduction
	Monitoring Purchasing Group Activity
	Formations and Retirements
		Four phases
			Phase 1: 1987-1988
			Phase 2: 1989-1992
			Phase 3: 1993-2000
			Phase 4: 2001-2003+
		Purchasing group survival rates
		Analysis of formation and retirement patterns
			Phase 1: 1987-1988
			Phase 2: 1989-1992
			Phase 3: 1993-2000
			Phase 4: 2001-2003+
	Trends by Business Areas
		Comparing 2004 with 1995
		A changing marketplace
			Healthcare
			Property Development
			Professional Services
			Manufacturing & Commerce
			Transportation
			Leisure
			Government & Institutions
			Hospitality
			Publishing & Office Services
			Environmental
			Financial
		Observations on trends
	Challenge of Obtaining PG Premium Data
			Schedule T data
			The Texas experience
		Estimating PG Premium
			Key assumption

Chapter Five Formation of Purchasing Groups
	Introduction
	Initial Considerations
		Basic ingredients
		LRRA requirements
		Legal structure
			Unincorporated association
			For-profit corporation
			Not-for-profit corporation
		Tax considerations
		Directors & officers coverage
		Control of the PG
		State of incorporation
		Selection of domicile
		Costs of formation
			Who pays for costs of formation?
	Source of Members
		Association- sponsored PGs
		Books of homogeneous business
		Industry affinity groups
	Group Buying is Wave of Future

Chapter Six Operation of Purchasing Groups
	Introduction
	Representation of Purchasing Group
		Negotiating for the PG
		Loss data
		Actuarial analysis
		Dividend plans
		Providing for change
		Benchmarking
	Division of Operational Responsibilities
		Insurance-related services
		Member-related services
		Regulatory compliance

Chapter Seven Regulation of Purchasing Groups
	Introduction
	Liability Risk Retention Act Requirements
	Permissible Areas of State Regulation
	Discussion of Application of State and Federal Law
		Definitions
			Insurance
			Liability
			Purchasing group
			Homogeneity
			Purpose
			Domicile
			Domicile selection
			Role of the domiciliary state
			PG insurers
		Preemption from state law
			Fictitious group laws
			Countersignature laws
			Providing advantages to PGs
			Discrimination not permitted
			Financial responsibility laws
		Permissible areas of state regulation
			Agent/broker licensing
			Notice to state insurance commissioners
			PG registration
			Registration forms
			Fees
			Renewal registration
			Rate & form filing requirements
			Compliance with surplus lines laws
	State Risk Retention Acts
		Key differences between NAIC Model Act and LRRA
			Notice to state insurance commissioners
			Guaranty fund protection
			Deductibles
			Aggregate limits
			Premium taxes
			Agent licensing
	Frequently Asked Questions
	RRR.COM Information & Services

Chapter Eight Purchasing Group Insurers
	Introduction
	Regulatory overview
	Key Insurer Issues
		Admitted insurers
			Rate and form filings
			Timing and coordination of rate & form filing with registration
			Guaranty fund protection
			Countersignature laws
			Issuance of master policies
		Surplus lines insurers
			Compliance with surplus lines laws
			Insurer financial strength
			Declinations from the admitted market
			Notice of no guaranty fund protection
		Risk retention groups
	Common Issues
		Payment of tax
		Timing of PG registration
		Performance of regulatory compliance

Chapter Nine Agents and Brokers
	Introduction
	Role Of Agents And Brokers
		Scope of role
		Relationship to PG
		Linking to existing PGs
			Suitability of insured
			Accessibility of PG
			Compensation
			PG registration
		Forming new PGs
			Need
			Homogeneous group
			Desire for national (or regional) expansion
			Critical premium mass
			Preemption of state regulation
			Value added service
			Remuneration
		Source of members
			Trade and professional associations
			Homogeneous books of business
			Industry affinity groups
	Regulation
		LRRA provisions on licensing
		State requirements
		PGs insured by admitted insurers
		PGs insured by surplus lines insurers
			Timing
			Premium tax
		PGs insured by RRGs
	Future Vision

Appendices
	Appendix A Purchasing Groups Listed Alphabetically

	Appendix B Purchasing Groups by Business Area

	Appendix C Purchasing Groups by State of Domicile

	Appendix D Purchasing Groups by Insurer

	Appendix E State-by-State Survey of Purchasing Group Regulation

	Appendix F Liability Risk Retention Act of 1986 15 U.S.C. 3901-3906

	Appendix G Proposed Amendments to the Liability Risk Retention Act of 1986 15 U.S.C. 3901-3906

	Appendix H Citations to State Risk Retention Acts

	Appendix I Selected Risk Retention Reporter Articles

	Appendix J RRR.COM Information & Services

	Appendix K Order Forms

Glossary of Key Terms

Index

A Practical Guide to Purchasing Groups (order form)

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