The CICA Board of Directors voted unanimously to support passage of “The Risk Retention Modernization Act” (HR 2126), the latest effort in Congress to update the Liability Risk Retention Act (LRRA) by authorizing risk retention groups to offer commercial property insurance (in addition to general liability insurance). This legislation also establishes financial responsibility and corporate governance standards for risk retention groups, as recommended in the 2005 GAO study, along with a dispute resolution process that would permit risk retention groups to petition the director of the Federal Insurance Office for a determination of whether a regulatory requirement by a non-domiciliary state is preempted by the LRRA – a long-overdue enforcement mechanism!
A full copy of the legislative report, titled “Legislative and Regulatory Update” from Jim McIntyre, is available on the homepage of the CICA website under “What’s New”. You must be logged in to view the document.