Captive.com – Jan. 31, 2020
The chairman of a House of Representatives subcommittee is urging opponents and supporters of legislation that would allow certain risk retention groups (RRGs) to expand coverages they can offer to their policyholders to work together to come up with a compromise measure.
“I would love both sides to leave this hearing and come up with a working document,” said Rep. William Lacy Clay (D–MO), chairman of the Housing, Community Development, and Insurance subcommittee. Hopefully, lawmakers can find a middle ground, Rep. Clay added.
Rep. Clay’s comments came at a January 30, 2020, hearing by his subcommittee on legislation, H.R. 4523, introduced last year by subcommittee member Rep. Alan Green (D–TX) that would allow RRGs to offer property coverages.
Certain conditions, though, would have to be met for property coverage to be offered. For example, an RRG would have to be operating for at least 10 years and maintain capital and surplus of at least $10 million.
In addition, only nonprofit members of the RRG could obtain property coverage. The measure also would bar RRGs from offering property coverage in a state in which regulators made publicly available the names of at least three admitted commercial insurers that offer property coverage to nonprofit organizations.
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