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What are the advantages of risk retention groups?
Risk retention groups (RRGs) are owned by their member policyholders, so many key advantages relate to the control that their members exert through boards of directors they elect.
This control often results in lower rates over the long term, broader coverage, specialty coverage, more fair and equitable pricing, and effective risk management programs — leading to favorable loss experience for members and the group overall.
Is NIA a managing general agent (MGA)?
No. Nonprofits Insurance Alliance (NIA) is a group brand made up of nonprofit insurers, all rated A (Excellent) by AM Best, that exclusively insure 501(c)(3) organizations.
NIA currently insures more than 26,000 nonprofit organizations across 32 states and the District of Columbia.
In addition to coverages, NIA offers companion programs with carrier partners.
What is ANI?
Alliance of Nonprofits for Insurance (ANI) is an risk retention group (RRG) for 501(c)(3) nonprofit organizations.
It is part of the Nonprofits Insurance Alliance (NIA) group brand and is an insurance company domiciled in Vermont.
ANI writes liability insurance for these nonprofits in 32 states and the District of Columbia. ANI is a 501(c)(3) nonprofit organization, just like the nonprofits it insures.
ANI’s mission is to provide nonprofits with a stable source of fair and equitably priced liability insurance coverage tailored to the specialized needs of the nonprofit sector.
ANI also works to assist these organizations to develop and implement successful risk management programs.
What type of insurer is NIAC?
Nonprofits Insurance Alliance of California (NIAC) is a risk pool authorized under Chapter 5005.1 of the California Corporations Code which became law in 1986.
This law was amended in 2015 to enable risk pools in California to provide coverage for property as well as liability.
This change was passed as part of a consent agenda in acknowledgement of the great work that NIAC has accomplished serving the nonprofit community in California.
Since risk pools are authorized under the California Corporations Code, they are specifically not regulated by the Department of Insurance in California.
This law is modeled after the Joint Powers Authorities which are used by many California municipalities. As such, risk pools and Joint Powers Authorities are not part of the guaranty fund.
What foundations provided the initial funding for the companies in NIA?
NIAC, founded in 1989 as a liability insurance pool, was originally capitalized with $1.3 in loans from the following foundations:
ANI was founded in 2001 as a risk retention group which, along with an affiliate captive reinsurance company, was capitalized with $10 million from two foundations.
Each of the following foundations contributed $5 million.
What is Nonprofits Insurance Alliance’s AM Best rating?
NIAC, the first company in NIA, was one of the first insurance pools, or alternative insurers, to be rated by AM Best. The rating process involves a rigorous review of company operations, management, history, and financial position.