ARSA Mx Liability Insurance Group Licensed

 - July 14, 2010, 8:06 AM

The Aeronautical Repair Station’s efforts to create a risk-retention group to provide commercial liability insurance for its members is closer to fruition. In late June, the Aviation Alliance Insurance Risk Retention Group (AAIRRG), established by ARSA and Polaris Enterprise Group, received its certificate of authority (insurance license) from the state of Montana. As a risk-retention group, AAIRRG “consists of independent companies that assemble to create and fund a licensed captive insurance company, which operates under the federal Liability Risk Retention Act of 1981 [and] is able to write commercial liability insurance for its members,” according to ARSA. The group’s members are also shareholders and can earn money from potential underwriting profits, ARSA explained. To obtain liability insurance coverage through AAIRRG, ARSA members still need to go through a registration process in their own states, according to ARSA. “This is not an offer for insurance and no coverage may be bound or policies issued until the registration process has been completed.”