Terrafirma Risk Retention Group is owned and operated by the land trust participants for their collective benefit to support conservation permanence. A Risk Retention Group is a liability insurance company that is owned by its members functioning as a captive insurance company and organized for the primary purpose of assuming and spreading the liability risk exposure of its group member owners. Once licensed by its state of domicile, an RRG can insure members in all states because RRGs operate under a federal law that preempts state regulation, making it easier for RRGs to operate nationally. Terrafirma is also a charitable risk pool and has a tax-exemption from the IRS.
If your land trust is a member of Terrafirma, you accepted the terms of the Operating Agreement when you applied for Terrafirma coverage and your copy of the application contains a link to the Operating Agreement. If you cannot find your copy of the Operating Agreement and would like a new copy, please contact us.
Instead of a Board of Managers, the Members in the LLC Agreement established a Members Committee to represent their interests. In order to assure broad representation of the land trust community in America, the LLC Agreement provides for the election of the Members Committee by region on a rotating basis, and also requires nominations on a basis reasonably designed to include on the Members Committee representatives of national, regional (State) and local land trusts, and also a mix of accredited and non-accredited land trusts.
Terrafirma fully explored all available reinsurance options. Most companies will not offer it to a new risk retention group. The ones who will offer the coverage charge unaffordable premiums that would evaporate the capital buffer without providing significant coverage. After five successful years of operation, Terrafirma will revisit the availability and pricing of reinsurance.
No. Land trusts will not have any obligation to commit future capital contributions in the event of financial difficulties for Terrafirma.
No. Terrafirma is a non-profit and is not permitted to make distributions to members. In the event Terrafirma's financial performance exceeds expectations, excess funds will be used to finance future conservation defense efforts.
To view Terrafirma's Form 990 and other financial documents, click here.