What is the broader category under which Risk Retention Groups (RRG) fall?

Risk Retention Groups (RRG) are indeed classified under the broader category of captive insurance. Captive insurance refers to an alternative risk management tool where a company creates its own insurance subsidiary to manage risks that it faces. RRGs are specific types of captives that allow members who share similar risks to pool their resources and manage those risks collectively.

In the context of insurance, RRGs enable their members to self-insure their risks while providing them with liability coverage. They operate under the liability risk retention statutes, which allow for the establishment of such groups, primarily benefiting businesses that have similar exposures.

The other choices, while related to risk management and insurance, do not accurately categorize RRGs. Mutual insurance companies are owned by their policyholders and operate on a different structure than the collaborative model of RRGs. Self-insured groups can refer to a group that collectively self-funds their risks but is not limited to the context of members with similar liabilities, as is the case with RRGs. Government-funded programs are entirely distinct from RRGs and involve funding provided through governmental sources rather than through private member contributions.

Thus, classifying Risk Retention Groups under captive insurance captures the essence of their operation and purpose accurately.