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SIIA Re-igniting RRG Bill in Congress
June 24, 2010: The Self-Insurance Institute of America, Inc. (SIIA) today reported that its lobbying team has intensified efforts to bring modernization of the Liability Risk Retention Act (LRRA) back to the attention of Congress as the House Financial Services Committee and the Senate Banking Committee wrap up their conference finalizing a bill to revamp the nation’s financial regulatory system.
Due to the pressing concern by Congress to shore up the nation’s financial markets, action on the SIIA-backed bill to modernize the LRRA (H.R. 4802) has been stalled. But as the regulatory reform bill nears its completion, SIIA lobbyists are working with Capitol Hill staff to make sure that issues related to ART market expansion are addressed in the coming months.
In March of this year Rep. Dennis Moore (D-KS) and Rep. John Campbell (R-CA) introduced The Risk Retention Modernization Act (H.R. 4802). The bill would expand the allowable coverage for risk retention groups (RRGs) to include commercial property insurance, as well as establish uniform and baseline corporate governance standards for RRGs.
The bill would also give the Treasury Department broad new powers to oversee the risk retention industry, including the authority to mediate interstate disputes regarding RRG authority. Under the legislation, the Department of Treasury would have the authority to review disputes between risk retention groups and non-domiciliary state regulators and offer interpretations regarding the Risk Retention Act.
SIIA will also work toward introduction of a companion bill in the Senate and is urging members of Congress to ask the Government Accountability Office (GAO) to study regulatory interference with RRGs by non-domiciliary State regulators.
The formal request, which will be made in the next few weeks, will ask the GAO to conduct a study examining instances when non-domiciliary states violate the Risk Retention Act by attempting to regulate risk retention groups not under their authority; the costs to RRGs associated with these state actions; and possible legislative solutions that would reinforce the foundation of the LRRA of 1986. SIIA believes the findings of the study will demonstrate significant and unlawful interference by non-domiciliary States.
SIIA is non-profit trade association that represents the business interests of companies involved in the self-insurance/alternative risk transfer marketplace. Additional information about the association can be accessed on-line at www.siia.org, or by calling 800/851-7789. ### |
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