Nondomiciliary states are encroaching on the preemption provisions of the federal Liability Risk Retention Act, 61 percent of RRGs reported in a Risk Retention Reporter survey. What’s more, RRGs that found their ability to operate contingent upon state approval were among the RRGs reporting the largest financial impact.

This was particularly true for an RRG that provided contractual liability. This RRG reported that “California, Florida, New York and North Carolina refused [our] registration on the basis that the type of liability coverage being offered was not of the type allowed under the LRRA.”

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