The Self-Insurance Institute of America, Inc. (SIIA) today announced its support for new legislation designed to modernize the federal Liability Risk Retention Act (LRRA) of 1986.
Introduced today, the “Increasing Insurance Coverage Options for Consumers Act of 2008” would allow risk retention groups (RRGs) to write property coverage and would also establish some federal corporate governance standards for RRGs. This bill represents an important step toward solving the problems of availability and affordability of commercial property insurance through the United States by permitting alternative risk transfer solutions,” said SIIA President Dick Goff. “The bill also clarifies the LRRA’s federal preemption to assure risk retention groups that they will be able to do business as the original act intended,” he added. One stated objective of the bill is to “reinforce the foundation of the Liability Risk Retention Act” that allows properly licensed risk retention groups to provide coverage in any state with no interference from non-chartering state regulators.