I.I.I. Glossary

ASSETS- Property owned, in this case by an insurance company, including stocks, bonds and real estate. Insurance accounting is concerned with solvency and the ability to pay claims. State insurance laws therefore require a conservative valuation of assets, prohibiting insurance companies from listing assets on their balance sheets whose values are uncertain, such as furniture, fixtures, debit balances and accounts receivable that are more than 90 days past due. (See Admitted assets )

RISK RETENTION GROUPS (RRGs)- Liability insurance companies formed by businesses with common insurance needs that band together as self-insurers and form an organization that is chartered and licensed as an insurer in at least one state. RRGs, which are owned by their members, were allowed to form by the 1986 Federal Liability Risk Retention Act (LRRA).