NU Online News Service, June 7, 3:00 p.m.EDT

A bill has been introduced that would establish a federalmechanism to resolve disputes between risk retention groups andnon-domiciliary states.

The bill is being praised by RRG groups that have contended thatsome states are overstepping their authority when imposingrequirements on RRGs.

The legislation, HR 2126, would also allow RRGs to writeproperty commercial coverage, according to the RRG groupsSelf-Insurance Institute of America (SIIA), the National RiskRetention Association (NRRA) and the Risk & InsuranceManagement Society (RIMS).

The NRRA and SIIA have previously said that while the Liability RiskRetention Act (LRRA) of 1986 granted RRGs the freedom to dobusiness nationally when licensed in a single state, some stateshave imposed burdensome requirements on these RRGs that violate theact. 

Responding to the recently introduced bill, Brian Braley, chairof the NRRA board, says, "NRRA is hopeful that this legislationwill facilitate dispute resolution between RRGs and some of thestates that choose not to adhere to the limitations imposed on themby federal law."

SIIA Chief Operating Officer Mike Ferguson adds, "We are pleasedthat this legislation is moving forward as it promises tostrengthen and expand the alternative risk transfermarketplace."