WASHINGTON, DC--(Marketwire - July 26, 2010) - Representatives Dennis Moore, Suzanne Kosmas, and John Campbell requested in a letter dated July 22, 2010, that the Government Accountability Office (GAO) conduct a study of the regulation of risk retention groups (RRGs) with a focus on the actions of states other than the state in which the RRG is chartered. The study will examine the actions of these non-domiciliary states, which may exceed their authority under the Liability Risk Retention Act (LRRA).
"The National Risk Retention Association (NRRA) appreciates the interest Reps. Moore, Kosmas and Campbell have expressed in the implementation of the LRRA by the states," said Kim Wynkoop, chair of the board of NRRA. "Our experience has been that some states are not attentive to the limitations of the federal law and impose obligations on RRGs that are unreasonable."
Reps. Moore, Kosmas and Campbell are sponsors of "The Risk Retention Modernization Act" (H.R. 4802), which includes provisions that would allow the Treasury to resolve disputes relating to the terms of the LRRA.
"The imposition of filing fees, filing requirements, information requests, waiting periods and other duties not authorized by the LRRA are a continuing problem for the RRG industry," said Robert Myers, NRRA general counsel and a partner in Morris, Manning and Martin, LLP. "The LRRA was designed to eliminate excessive state regulatory requirements, and Congress's intent is being thwarted. The GAO study will be a great step toward quantifying the problem and, hopefully, providing the basis for needed Congressional oversight."
NRRA has worked closely with the Self-Insurance Institute of America, the Risk Insurance Management Society, and others to inform Congress of the status of RRG regulation and the need for greater Congressional involvement. NRRA participated in the 2005 GAO study and will coordinate and gather information for the new GAO study.
The National Risk Retention Association (NRRA) is the voice of risk retention group and purchasing group liability insurance programs. NRRA is dedicated to the successful development, education and promotion of U.S. domiciled alternatives to traditional liability insurance and provides a forum for the country's most knowledgeable individuals in risk retention insurance to exchange valuable and timely information. NRRA fulfills its mission through education, communication, government relations, and judicial advocacy. For more information about NRRA, visit www.riskretention.org
Contact Information:
Contact:
Skip Myers
General Counsel
National Risk Retention Association
Tel 202-898-0011