Concerning the insurance fund, usually on these types of policies, the policy holders are also severally liable if the entity is sued. Are the policy holders liable?
Because we are forming a “stock” RRG and each policy issued by the RRG is fully insured, the policyholders do NOT have joint and several liability. In addition reinsurance is being purchased to protect the RRG from a large claim. In the unexpected event of an insolvency, RRG shareholders will lose their investment in the company but that is where the shareholder liability ends.
