Risk Retention Group. The Purchaser acknowledges and agrees that as a risk retention group under the LRRA and applicable state law, the Company must require that each insured of the Company be a shareholder of the Company and that each shareholder must be and remain an insured of the Company. /// 1 Purchaser’s Initials Date 3. Acceptance or Rejection of the Purchaser by the Company: This Agreement may be accepted or rejected by the Company in its sole and absolute discretion and shall be binding only upon the execution of this Subscription Agreement by the Company. If this Agreement is not entered into by the Company, in the Company’s sole and absolute discretion, any documents deposited by the Purchaser will be returned to the Purchaser or destroyed by the Company.
Risk Retention Group. The term ‘‘risk retention group’’ means any corporation or other limited liability associa- tion taxable as a corporation, or as an insur- ance company, formed under the laws of any State—
Risk Retention Group. Buyer acknowledges that the Companies and their Subsidiaries have been provided insurance coverage by Transportation Insurance Services Risk Retention Group, Inc., a South Carolina corporation (“TIS”), who is an intended third party beneficiary of this Section 4.08. As of 5:00 p.m. Eastern Time on March 28, 2019, the Companies and their Subsidiaries have outstanding with TIS the claims, subject to the associated reserves, each as set forth on Schedule 4.08. Buyer agrees that it will either (i) fund, pay and/or settle directly any Losses associated with the claims set forth on Schedule 4.08 and any other claims subject to insurance coverage provided by TIS occurring on or prior to the Closing (collectively, the “TIS Claims”), up to the applicable limits set forth on Schedule 4.08, or (ii) fully and timely fund (within two (2) Business Days of a written demand by TIS and prior to the payment by TIS of the underlying Loss) the TIS Claims, up to the applicable limits set forth on Schedule 4.08. In furtherance of the foregoing, (a) Buyer agrees that, in the event any Losses associated with the TIS Claims are not fully and timely funded as provided in the foregoing sentence, Buyer will promptly reimburse TIS, or will cause TIS to be promptly reimbursed, for any amount paid by TIS in respect of the TIS Claims and (b) Buyer will indemnify, defend, and hold TIS and Parent harmless from any Losses, directly or indirectly, to the extent based upon, relating to, incurred in connection with, resulting from, or with respect to the TIS Claims, including, without limitation, any failure of the Buyer to fully and timely fund any TIS Claim or reimburse TIS for any amount paid by TIS in respect of the TIS Claims in accordance with this Section. 44
Risk Retention Group. A risk retention group is a privately-owned insurance company that complies with the Liability Risk Retention Act of 1986 (“LRRA”), as amended. Under the provisions of the LRRA, all insured policyholders must also have an ownership interest in the risk retention group. Likewise, each entity with an ownership interest in a risk retention group must also be an insured policyholder of the risk retention group. Policyholders in a risk retention group are required to be in the same, similar, or related lines of business to achieve a similarity of risks among policyholders. Pursuant to the LRRA, risk retention groups are afforded certain statutory exemptions which conventional insurance companies do not receive. Risk retention groups may only insure liability exposures. Property insurance coverage and workers’ compensation and employers’ liability insurance may not be offered by a risk retention group. The comprehensive general liability exposures of Members and Members engaged in the construction of housing are liability exposures that may be insured by a risk retention group.
