Proposed Amendments to Risk Retention Act Debated
This past June the Commerce, Consumer Protection and Competitiveness Subcommittee of the House Energy and Commerce Committee conducted a hearing on House bill 4351, which would amend the Liability Risk Retention Act of 1986.
During the hearing Susan Howard, associate undersecretary for economic affairs for the Department of Commerce, recommended amendments to the act that would ensure membership control of risk retention and purchasing groups; preserve single state regulation; tighten state regulation of purchasing groups; and improve disclosure requirements regarding purchasing groups and their insurers.
Ms. Howard, who was accompanied by department representatives Jane Malloy and Ted Barrett, said that although the department does not specifically endorse the bill, it supports many of its provisions.
The department panel opposed the suggestion from Rep. Jim Slattery, D-KS, who proposed the bill, that the department should investigate the solvency of particular risk retention groups when state regulators are suspected of failing to do so. In addition, the panel recommended that the NAIC increase its monitoring...
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