Frequently Asked Questions

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  • Does Red Clay Risk Retention Group maintain only financial rating from a third party?

    Red Clay RRG is not rated.

  • What are the reinsurance arrangements of the company?

    Excess reinsurance is purchased for $800,000 excess $200,000.

  • What is the stock buy-in for Red Clay?

    The required stock buy-in is 75% of mature premium.

  • Are stock funds collected over time or are they paid upfront?

    Paid upfront prior to securing coverage.

  • Is the stock valued by a third party, or is the value calculated internally?

    The stock is valued at the book or carrying value of the Company's financial 

    statements. The financial statements are audited by an independent CPA firm, 

    submitted to NAIC and the South Carolina of Commerce and Insurance.

  • What is the limit per physician for all prior acts?

    The limit is $1 million per occurrence, $3 million in aggregate.

  • Who is covered under the shared limit policy?

    The policy will provide shared limit coverage to the insured, endorsees, and the 

    named corporation.

  • Does the RRG put together annual financial statements for its members?

    Red Clay RRG files a NAIC annual statement, which includes a 5-year historical

    summary. This is public information. The Finance Committee and Board are provided

    and review the Company’s financial statements quarterly. At any time, an insured

    may request interim financial statements and management will make them available.

  • Is there a possibility of a capital call?

    There is, but since inception in 2008 there has never been one.

  • Do all shareholders in the RRG have voting rights?

    Ownership equity contributions are required based upon a percentage of their claims

    made mature premium.

    Each insured is titled one A-Class Voting share and the remainder in B-Class NonVoting shares. The quantity of B-Class shares issued is based upon the equity

    contribution divided by share price at the preceding quarter-end.

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