How does a RRG differ from an Excess & Surplus Lines Company?
A. RRGs are similar to E&S in that neither RRGs or E&S carriers participate in state guarantee funds and nor have their rates and forms approved by the departments of insurance. However, an E&S carrier must be approved by each state, are subject to the insurance laws of each state in which it wishes to write business and brokers selling E&S insurance in a state must receive declinations from admitted carriers before coverage can be bound. Admitted companies and Excess and Surplus lines companies typically insure multiple specialties and are owned by individuals/corporations other than the insureds. PROAIR RRG is owned solely by its insureds aerial applicators and has only the well-being of those owners as its sole reason for existing.
