NU Online News Service, June 7, 3:00 p.m. EDT
A bill has been introduced that would establish a federal mechanism to resolve disputes between risk retention groups and non-domiciliary states.
The bill is being praised by RRG groups that have contended that some states are overstepping their authority when imposing requirements on RRGs.
The legislation, HR 2126, would also allow RRGs to write property commercial coverage, according to the RRG groups Self-Insurance Institute of America (SIIA), the National Risk Retention Association (NRRA) and the Risk & Insurance Management Society (RIMS).
The NRRA and SIIA have previously said that while the Liability Risk Retention Act (LRRA) of 1986 granted RRGs the freedom to do business nationally when licensed in a single state, some states have imposed burdensome requirements on these RRGs that violate the act.
Responding to the recently introduced bill, Brian Braley, chair of the NRRA board, says, "NRRA is hopeful that this legislation will facilitate dispute resolution between RRGs and some of the states that choose not to adhere to the limitations imposed on them by federal law."
SIIA Chief Operating Officer Mike Ferguson adds, "We are pleased that this legislation is moving forward as it promises to strengthen and expand the alternative risk transfer marketplace."
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