strictly limits the regulatory authority of states other than the state in which an RRG is licensed.
Action Requested: NAA/NMHC urge Congress to advance insurance availability and decrease exorbitant premiums by amending LRRA
to permit RRGs for property coverage.
Furthermore, an analysis of the LRRA
suggests that nonchartering states already have sufficient regulatory powers to protect policyholders and members of the public without going after RRGs.
The GAO report states, however, that LRRA
is "silent" on its regulations, and "neither explicitly permits nor prohibits non-domiciliary states from requesting additional documentation or charging fees" such as one-time registration fees, annual renewal and filing fees, differing premium tax rates and a "retaliatory" premium tax rate.
The Risk Retention Modernization Act, HR 2126, which is pending in Congress, proposes to expand LRRA
to include commercial property risks and standardize corporate governance requirements.
The formal request, which will be made in the next few weeks, will ask the GAO to conduct a study examining instances when non-domiciliary states violate the Risk Retention Act by attempting to regulate risk retention groups not under their authority; the costs to RRGs associated with these state actions; and possible legislative solutions that would reinforce the foundation of the LRRA
The proposed expansion could open the LRRA
Background In response to skyrocketing insurance costs in the 1980s, Congress passed LRRA
to facilitate the formation of RRGs that would promote affordable liability coverage within individual industries by spreading risk exposure among group members.
did this by laying the legal groundwork for forming a risk retention group (RRG) a cooperative insurance entity or association captive made up of owners (or members) engaged in similar business practices and facing similar liability exposures.
is opting out of the Arkansas Realtors Association's Awards for Excellence program.
BOC Aviation also confirmed Thales as their preferred choice for avionics with the selection of Thales FMS & MCDU (Multi Control Display Unit), fixed and survival ELT, LRRA
and AOA (Angle of Attack), under their base line agreement for 30 A320 aircraft.
The 1986 change expanded the scope of the LRRA
to include coverage of most types of commercial liability insurance (with the notable exception of workers' comp liability).