This page describes the organizational structure of the Social Inflation Risk Alliance Purchasing Group, the roles of the parties involved in its administration, and the legal framework under which it operates.
Organizational Structure
The Social Inflation Risk Alliance Purchasing Group is organized as a Risk Purchasing Group under the Liability Risk Retention Act of 1986. The Alliance is a distinct legal entity, domiciled in Delaware, organized for the purpose of collectively purchasing excess and umbrella liability insurance on behalf of its members.
The Alliance is not organized as an insurance company, risk retention group, or mutual insurer. It does not pool risk among its members. Each member's coverage is provided by a licensed insurance carrier under a separate policy — the purchasing group structure governs the collective purchasing arrangement, not the risk-sharing relationship between members.
Roles and Responsibilities
The Alliance Purchasing Group
The Alliance is the legal entity through which members collectively access the insurance program. It holds the purchasing group registration in applicable states, enters into program-level agreements with carriers and other service providers, and establishes the terms and conditions of membership as set forth in the Membership Agreement.
Members
Members are organizations that have been accepted into the Alliance Purchasing Group through the enrollment and underwriting process. By accepting membership, members agree to the terms of the Membership Agreement, including:
- Representations regarding their operations and eligibility
- Commitment to the applicable tier requirements
- Compliance with program protocols including incident notification obligations
- Cooperation with underwriting renewal processes
Members access insurance coverage through the program on the terms established by the Alliance.
Program Administrator — Rainshade Specialty LLC
Rainshade Specialty LLC serves as the program administrator for the Alliance. The administrator is responsible for day-to-day operations, including:
- Member enrollment and onboarding
- Underwriting coordination with participating carriers
- Tier status management
- Intelligence platform operation
- Incident notification coordination
- Regulatory compliance and state registration maintenance
- Member and broker communications
The administrator acts on behalf of the purchasing group in its operational capacity but does not act as an insurer or guarantor of coverage.
Participating Carriers
Insurance coverage available through the Alliance is provided by licensed insurance carriers who participate in the program. Carriers are responsible for underwriting individual member risks, issuing policies, and paying covered claims in accordance with policy terms. Carrier participation is subject to change. The identity of participating carriers is disclosed to members through their brokers and in their policy documents.
Brokers
Members access the Alliance program through their licensed insurance brokers. Brokers are responsible for presenting the program to eligible clients, facilitating the underwriting application process, communicating program terms and conditions, and representing the member's interests in the placement and servicing of coverage. The Alliance operates a publish-and-consume relationship with brokers: the Alliance operates the program and makes it available; brokers own the member relationship at all times.
Regulatory Framework
The Alliance operates under the following regulatory framework:
- The Liability Risk Retention Act of 1986 provides the federal legal authority for the Alliance's organization as a Risk Purchasing Group. Under the LRRA, purchasing groups may purchase liability insurance on a multi-state basis from admitted insurers and are exempt from most state insurance regulatory requirements that would otherwise apply to group insurance purchases.
- The Alliance is registered as a Risk Purchasing Group in applicable states in accordance with LRRA requirements. State registration requirements vary. The Alliance administrator maintains compliance with applicable state notice and registration obligations on behalf of the group.
- The Alliance's governing documents — including the Membership Agreement, Participation Agreement, and organizational documents — establish the contractual framework under which the purchasing group operates. These documents are available in the Document Center.
Program Changes and Member Notification
The Alliance administrator may modify program terms, carrier arrangements, coverage parameters, and eligibility criteria from time to time in the exercise of its administrative authority. Material changes will be communicated to members and their brokers in advance and in accordance with the requirements of the Membership Agreement and applicable law.
Members are encouraged to maintain current contact information with their broker and the Alliance administrator to ensure receipt of program communications.
This page is informational only and does not constitute legal advice. Members should consult independent counsel regarding their participation in the Alliance Purchasing Group.