Insurance:

Activity Under the Product Liability Risk Retention Act of 1981

HRD-86-120BR: Published: Jul 22, 1986. Publicly Released: Jul 22, 1986.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

In response to a congressional request, GAO provided information on the extent to which risk retention and purchasing groups have formed under the authority of the Product Liability Risk Retention Act of 1981, specifically: (1) the number of firms with collective self-insurance under the act; (2) the types of firms most frequently organized under the act's provisions; (3) obstacles faced by groups formed under the act's provisions; and (4) changes in state insurance laws relating to the act.

GAO found that: (1) seven firms took advantage of the collective self-insurance provision of the act; (2) three of the firms were risk retention groups and four were purchasing groups; and (3) two states adopted model legislation that incorporates most of the federal act's provisions but also defines product liability with reference to each state's tort law. GAO also found that businesses had little incentive to form risk retention and purchasing groups because: (1) product liability insurance was readily available and more affordable until recently; (2) considerable effort and financial resources are needed to set up and administer the groups; and (3) some state insurance departments took legal action against risk retention and purchasing groups.

Jun 15, 2017

May 31, 2017

May 4, 2017

Apr 26, 2017

Apr 25, 2017

Mar 29, 2017

Mar 2, 2017

Jan 12, 2017

Jan 9, 2017

Nov 21, 2016

Looking for more? Browse all our products here