A move by North Carolina to limit use of risk retention groups in the state has provoked a letter of protest from the National Risk Retention Association.

The Washington, D.C.-based NRRA sent a letter to the North Carolina Insurance Department stating that if passed in its current form, House Bill 645, adopted in the House May 12 and sponsored by Hugh Holliman, D-Davidson, would "discriminate against risk retention groups in a manner prohibited by federal law."

Under the Risk Retention Act groups of companies can band together as self-insurers to provide coverage for hard-to-insure and homogeneous risks.

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