FSR for American Builders Insurance Company RRG, Inc.

ABIC Contact Info:

   Managing General Agency
   Appalachian Underwriters, Inc.
   800 Oak Ridge Turnpike,
   Suite A-1000
   Oak Ridge, TN 37830

   Phone: 888.376.9633
   Fax: 866.409.3367

Home / About Us

ABIC, RRG was created in accordance to the Liability Risk Retention Act (LRRA) Act of 1986. In passing this Liability Risk Retention Act, Congress created an alternative solution to liability issues at that time, which included a lack of product availability and excessive rates. This Act allows groups of similar liability exposures to own and obtain coverage from an insurer formed as a Risk Retention Group (RRG). A RRG is a liability insurance company, owned by its members, and in our case, through the American Builders Association.

Effectively, American Builders Association members pay ABIC premiums for their specific liability exposure that fund the reserves to pay potential claims and re-occurring program administration fees. The advantages of such a program include; unbundled services, stable pricing, broader coverage and reporting forms, and member influence over risk management to name a few. Potential disadvantages may include that the RRG isn't allowed to issue policies outside the "associations" core business foundation, and it only offers liability insurance.

Risk Financing Structure

ABIC has secured reinsurance through an “A-” rated A M Best reinsurer, with assets in excess of 2.5 billion dollars. ABIC, RRG has also secured reinsurance to limit its exposure on any single loss to $200,000 on an 80/20 quota share model. The RRG also carries $1,000,000 in surplus.