Governance

Who owns Terrafirma?

Terrafirma Risk Retention Group is owned 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. It functions as a captive insurance company, 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. 

When did I get my copy of the Operating Agreement for Terrafirma?

If your land trust is a member of Terrafirma, you accepted the terms of the Operating Agreement when you applied for Terrafirma coverage. 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 at .

How is the Terrafirma Members Committee selected?

Instead of a Board of Managers, the Members in the LLC Agreement established a Members Committee to represent their interests and provide oversight of ARMS management. 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. Nominations are designed for a diverse membership that includes representatives of national, regional (state) and local land trusts, and a mix of accredited and non-accredited land trusts.

Has Terrafirma explored the possibility of commercial reinsurance?

Terrafirma fully explored all available reinsurance options. Most companies will not offer it to a new risk retention group. The ones who would offer it charge unaffordable premiums that would evaporate the capital buffer without providing significant coverage.Terrafirma periodically revisits the availability and pricing of reinsurance.

Is Terrafirma an assessable insurance policy?

No. Land trusts will not have any obligation to commit future capital contributions in the event of financial difficulties for Terrafirma.

Will Terrafirma members receive dividends?

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. 

Where can I find a copy of Terrafirma's Form 990?

To view Terrafirma's Form 990 and other financial documents, click here.