An entity that offers insurance to groups of similar businesses with similar exposures to risk.
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US: Authorized by the Liability Risk Retention Act of 1986, a group formed to obtain liability coverage for its members, all of which must have similar or related exposures. The Act requires a purchasing group to be domiciled in a specific state. In contrast to risk retention groups (RRGs), purchasing groups are not risk-bearing entities.
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MEDICAL,USA,REFERENCE: See: alliance and consumer health alliances.