4 Striking Advantages of the AAOIC Risk Retention Group

Your first question might be, “What does Risk Retention Group (RRG) really mean?”

With our RRG structure, AAOIC offers malpractice insurance to orthodontists. Like other RRGs, we were formed under federal laws in which policyholders are also stockholders. In contrast, commercial insurance companies are formed under state laws, and policyholders don’t have equity in the company.

RRGs are limited to insuring businesses or professions of a similar type, and they are domiciled in one state and regulated by the laws of that state. The AAOIC now insures over 50% of eligible, active AAO members, and we exclusively insure orthodontists who are members of the AAO.

With that said, how does the AAOIC RRG benefit you?

1. We have strong financial support.
   With AAOIC’s malpractice insurance, all claims over $200,000 are reinsured by four companies rated A+ (superior) by A.M. Best. These four reinsurance companies have assets of billions of dollars, far in excess of most states’ insurance guarantee funds. And with over $53 million of our own reserves, AAOIC has more than adequate funding to defend you and pay any claims if the need arises. We have nearly $25 million of capital and surplus in addition to reserves, which are set conservatively based on actuarial studies, so there is very little chance of insolvency.
2. We set the gold standard in claims reviews.
   At AAOIC, we don’t handle claims like a commercial insurance carrier would, and that’s a good thing. With our RRG structure, all claims are reviewed by three experienced orthodontists and managed by expert legal counsel to develop the best strategy for you based on the facts and circumstances of the claim.
3. We share the wealth.
   Commercial insurers often hesitate to reduce rates and pay dividends. Because we believe in sharing annual profits, AAOIC is paying its sixteenth dividend to policyholders in 2024.
4. We are regulated.
   There’s a common misconception that RRGs aren’t regulated like commercial carriers. That assumption is simply not true. AAOIC was formed in 1995 in accordance with the Liability Risk Retention Act of 1986, and we operate under both federal regulations and the regulations of our state of domicile, Arizona.

Would our RRG work for your malpractice insurance needs? With AAOIC, the answer is definitely “yes!”

Learn more or apply today by calling 800.622.0344 or get a no obligation quote today!