NU Online News Service, July 14, 11:43 a.m.EDT

An amendment to the federal Liability Risk Retention Act thatwould allow inclusion of commercial-property coverage inrisk-retention groups has been introduced in the House ofRepresentatives and awaits further action, according to the officeof Rep. Peter Welch, D-Vt.

The Risk Retention Modernization Act (H.R. 2126) has beenreferred to the House Committee on Financial Services.

Welch, who wrote the legislation with Rep. John Campbell,R-Calif., earlier this week announced the bipartisan legislation,noting that it would grow the Vermont captive-insurance industryand lower the cost of insurance for businesses, nonprofits,hospitals and colleges.

Robert H. "Skip" Myers Jr., general counsel for the NationalRisk Retention Association, tells NU Online News Service hebelieves the bill "has a chance." He adds, "I think Congress isobviously tied up with really important things and we're doing whatwe can to move it through the process—gathering more support andspeaking to people on the committees in the House and theSenate."

The bill has not been introduced in the Senate yet, he says, but"we intend to do that."

Myers says the bill is "an important piece of legislation forus." Risk-retention groups, he adds, are a small portion of theindustry with about 3 percent of the premium, "but we're animportant part."

H.B. 2126 builds on the captive-insurance model that allowsbusinesses, nonprofits, hospitals and colleges to createrisk-management pools for liability-insurance coverage, accordingto a statement.

Welch's bill would allow inclusion of commercial-propertyinsurance coverage in these pools.

"Vermont's captive-insurance industry leads the nation inhelping businesses, nonprofits, hospitals and colleges manage theirrisk in a cost-effective way," Welch says in a statement. "Thisbill will allow them to increase coverage options and ensureVermont remains a leader in the captive industry."