{
  "id": "RL32176",
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      "id": 389080,
      "date": "2011-06-24",
      "retrieved": "2016-04-06T22:03:46.579337",
      "title": "The Liability Risk Retention Act: Background, Issues, and Current Legislation",
      "summary": "Risk retention groups (RRGs) and risk purchasing groups (RPGs) are alternative insurance entities authorized by Congress to expand insurance supply through a simplification of insurance regulation. The McCarran-Ferguson Act of 1945 generally leaves the regulation and taxation of the business of insurance to the individual states. In 1981 and 1986, however, Congress crafted a narrow exception to the usual state insurance regulations for these groups, generally exempting them from multiple state oversight. Membership in risk retention and purchasing groups is limited to commercial enterprises and governmental bodies, and the risks insured by these groups are limited to liability risks.\nOver the past two decades, interest\u2014both in Congress and in the market\u2014in RRGs and RPGs has varied largely with the vagaries of the regular insurance market. From 2001 to 2004, the insurance market was in one of its periodic \u201chard\u201d markets, and regular insurance became increasingly expensive and sometimes unavailable. Since 2001, the numbers of risk retention groups rose dramatically and calls have been heard to expand the scope of insurance that they are allowed to offer. At the same time, some problems occurred in individual risk retention groups, and cautionary voices have also been raised. Although the liability insurance market has softened somewhat in the past few years, with policies becoming more available and relatively less expensive, risk retention groups have continued to form in significant numbers.\nThe fundamental question surrounding expansion of the Liability Risk Retention Act (LRRA) can be posed as an issue of availability vs. reliability. Those who would support expansion often emphasize a failure of the current insurance market and the current regulatory system to make a sufficient supply of insurance available so that consumers who need insurance can find it at a reasonable price. The question they pose is essentially: \u201cWhat happens to a community when a business, a school, or a doctor can not afford or find liability insurance?\u201d Those who would oppose expansion often emphasize the dangers in allowing insurance to be sold that is not subject to same regulatory standards as \u201cnormal\u201d insurance. The question this group poses is essentially: \u201cWhat happens to a community if the insurer from which this business, school, or doctor purchases insurance ends up insolvent or if the policy does not cover what needs to be covered?\u201d \nIn the 112th Congress, H.R. 2126, the Risk Retention Modernization Act of 2011, would extend the LRRA to commercial property insurance, authorize the Federal Insurance Office to determine the states\u2019 compliance with the act and impose corporate governance standards on RRGs and RPGs. Representative John Campbell introduced the bill on June 3, 2011. A similar bill was introduced in the 111th Congress by Representative Dennis Moore, with Representative Campbell as a cosponsor.\nThis report outlines the current regulatory structures affecting risk retention and risk purchasing groups as well as the legislative and market history of these groups. It also discusses the debate regarding possible expansion of these groups into areas beyond commercial liability insurance. This report will be updated as significant legislative events occur.",
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    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc819384/",
      "id": "RL32176_2008Apr21",
      "date": "2008-04-21",
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    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc809649/",
      "id": "RL32176_2004Jan12",
      "date": "2004-01-12",
      "retrieved": "2016-03-19T13:57:26",
      "title": "The Risk Retention Acts: Background and Issues",
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      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc809249/",
      "id": "RL32176_2003Dec18",
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      "title": "The Risk Retention Acts: Background and Issues",
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