A new congressional drive has been launched to expand the coverages risk retention groups (RRGs) can offer to their policyholder-owners.
Legislation, H.R. 4523, introduced by Rep. Al Green (D-TX) along with seven cosponsors, all Democrats, would allow RRGs to offer property coverage. Under current federal law, RRGs, which are a special type of captive insurance company, can only offer commercial casualty coverages—except workers compensation.
Under the legislation, like a measure introduced but not acted upon in the prior congressional session, the only RRGs that would be eligible to offer property coverage would be those owned by nonprofit organizations with tax-exempt status.
Read more as Robert "Skip" Myers, and others, weigh in on this issue.