NRRA Conference to Focus on State Actions That Restrict Authority of Risk Retention Groups
For Immediate Release September 12, 2011
NRRA CONFERENCE TO FOCUS ON STATE ACTIONS THAT RESTRICT AUTHORITY OF RISK RETENTION GROUPS
Washington, DC – Actions by some states that interfere with the authority of Risk Retention Groups (RRG) to operate under the federal Liability Risk Retention Act will be a priority topic at the 23rd Annual Conference of the National Risk Retention Association (NRRA), October 5-7 in Washington, DC, Brian Braley, NRRA Chairman, reported.
The Nevada legislature recently enacted a law (AB 74) prohibiting RRGs that provide Vehicle Service Contracts from obtaining a Contractual Liability Insurance Policy (CLIP) from an affiliated company. The law exempts RRGs obtaining a Certificate of Registration before October 1 but will apply to all future service contract companies including Purchasing Groups. It also removes the option for the vehicle service contract insurer to provide a funded reserve to cover losses.
“This appears to be a clear case of discrimination against RRGs that provide vehicle service contracts and is similar to other challenges by some states to the authority of RRGs to operate under the Liability Risk Retention Act of 1986 that allows RRGs domiciled in a single state to do business in all other states with only limited regulation,” said Joseph Deems, long-time Chairman of NRRA’s Government Affairs Committee.
Conference Chairman Sanford Elsass said the meeting will provide a platform to build support for the recently introduced RRG Modernization Act (HR 2126). The proposed legislation would establish a mechanism to resolve disputes with states over RRG operating authority. “HR 2126 would put some teeth in the federal law and relieve RRGs of the costly burden of seeking relief in the courts,” Elsass said.
The Conference will focus on a wide range of topics including: regulatory issues, reinsurance, portfolio management, enterprise risk management, capitalization, managing litigation trends, predictive analytics, and rating agency standards for RRGs, among others. The Conference will be held at The Ritz Carlton Pentagon City, Washington, DC. Attendees can register online at www.riskretention.org .
For more information, contact Mechlin Moore, NRRA Communications (239-777-1595, firstname.lastname@example.org).