Captive Resource Center

Businesses and Associations

Research & Information

Regulatory: Mississippi House Bill 984 on Registration Fee for Risk Retention Groups

[Editor's note: This House Bill was sent to us in the aftermath of confusion which arose from a March 27, 2006 Captive Daily Wire article that said the following:

Senate Votes To Eliminate RRG Fees
Insurance Law & Litigation Week ... March 27, 2006 On March 7, the senate passed a bill which eliminates the $500 annual registration fee paid by risk retention groups RRGs licensed outside the state who provide coverage to policyholders in the state. The house version of the bill would have required these RRGs to be licensed by the department before conducting business in the state. However, lobbyists convinced the Senate Insurance Committee that such measures were preempted by the federal Risk Retention Act, which authorizes RRGs as multiple-owner captive insurers. HB 984 - DEx 107764.

We were a bit confused by it, but posted it anyway. Thankfully, the good folks in Mississippi are subscribers to Captive Daily Wire, and sent the following clarification. For your convenience, the direct link to the website is:

http://billstatus.ls.state.ms.us/documents/2006/html/HB/0900-0999/HB0984SG.htm]

*******************************************************************

MISSISSIPPI LEGISLATURE

2006 Regular Session

To: Insurance

By: Representative Formby

House Bill 984
(As Sent to Governor)
AN ACT TO AMEND SECTION 83-55-16, MISSISSIPPI CODE OF 1972, TO DELETE THE ANNUAL REGISTRATION FEE REQUIRED TO BE PAID BY RISK RETENTION GROUPS OR RISK PURCHASING GROUPS; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 83-55-16, Mississippi Code of 1972, is amended as follows:

83-55-16. * * *

(1) Each risk retention group or risk purchasing group which wishes to do or continue to do business in this state shall annually register on or before March 1 of each year. Should a risk retention group or risk purchasing group fail to timely register, the commissioner shall immediately revoke without notice or hearing any registration * * * held by the entity.

(2) Each risk retention group or risk purchasing group operating in the State of Mississippi shall file with the Mississippi Department of Insurance on or before March 1 of each year a listing of the premiums written on risks in Mississippi.

SECTION 2. This act shall take effect and be in force from and after July 1, 2006.