On Board Recorders

The FMCSA has now issued a rule that will require carriers and bus companies with serious patterns of hours-of-service violations to install electronic on-board recorders (EOBRs) in all their vehicles. Under the EOBR final rule, carriers who have 10 percent or more HOS violations during a compliance review will be required to install EOBRs in all their vehicles for a minimum of two years. Any carrier who voluntarily adopts the rule will receive relief from certain regulations on the paper trail for hours of service compliance. Read more

Risk Retention Groups

What is a risk retention group?
Risk retention groups were created in 1986 by the federal Liability Risk Retention Act as a response to restrictions in the liability insurance market. A risk retention group (RRG) enables its members (which are engaged in similar businesses) to create and own a liability insurance company. Once licensed in its state of domicile the RRG can insure members in all states. RRG’s allow their members to gain control of their liability insurance programs which can result in broader coverage, market stability, lower rates, better loss control services, and participation in underwriting and investment earnings.

What is the advantage of an RRG?
Since it is an insurance company owned by its members, an RRG permits the members to control the type of insured’s it admits and the nature of the insurance programs that are offered by the RRG. Over time, and properly managed, this control can result in more effective loss control programs, lower rates and more stable coverage which is less susceptible to insurance market cycles and profit-taking by stockholder-owned profit-oriented insurance companies. In addition, if successful, the invested capital of the RRG can accrue to the benefit of the membership (for example, as a retirement fund), and surplus capital can be returned to the members. Most importantly, the members own and control the RRG. They have full visibility to its operations and finance, and can benefit financially from sound underwriting and good claims management.

Who is eligible to be insured by FMCRRG?
Trucking companies who meet the underwriting standards of the Company are eligible to become members of the Company. A trucking company ceases to be an Insured and a Member at such time the Insured is no longer insured by the Company.

Who has regulatory responsibility for FMCRRG?
The state in which the RRG is domiciled has primary regulatory authority over it. The insurance department of the domicile state is responsible to monitor both the RRG's compliance with the LRRA and any specific requirements of that state of domicile. FMCRRG is regulated by the Delaware Department of Insurance. The Department directly oversees the operations of RRGs, and has extensive and direct experience in RRG oversight.

Risk Retention Group FAQ:

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