NRRA GOVERNMENT AFFAIRS: A SUMMARY1

1. JUDICIAL ADVOCACY

  • Charter Risk Retention Insurance Company v. Rolka, Pennsylvania, [1992] allowing RRG liability insurance for limousines
  • Mears Transpiration Group vs. Florida, [1993] requiring insurance from carriers only participating in guarantee funds
  • Preferred Physicians Mutual  Risk Retention Group vs. Pataki requiring excess insurance from New York Licensed insurers
  • National Risk Retention Association vs. Brown [1997], successfully challenging excessive capitalization, bond and filing fees
  • National Warranty Insurance Company vs. Greenfield [2000] again successfully challenging Oregon’s requirement to use only authorized insurers belonging to state guaranty fund which excluded RRGs
  • ALAS & HARRG vs. Fitzgerald [2001],  challenging an illegal tax, finding that it was a fee barred by the LRRA
  • Auto Dealers RRG vs. Poizner [2008], Amicus Briefing resulting in preliminary injunction prohibiting the California DOI from issuing an illegal Cease and Desist Order.
  • ANI RRG v. Nevada ( 9th Circuit – 2013)  NRRA member ANI prevails on appeal holding that state insurance commissioner erred in issuing cease and desist letter
  • Allied Professionals Insurance Co. RRG Adv: Wadsworth (Ziegler)[2014] holding that LRRA preempts New York “direct action” statute.
  • National Home Insurance Co. Adv: Frumer.  Certiorari to U.S. Supreme Court to enforce arbitration.  NRRA petition to appear as Amicus Curiae granted by Supreme Court.  (Cert. ultimately denied)
  • Allied Professionals Insurance Co. RRG Adv: Jodar. Prevailed on issue enforcing  arbitration in New Jersey based in part on LRRA preemption.
  • Speece v. Allied Professionals Insurance Co. RRG. [2014] Nebraska Supreme Court  holds that the LRRA preempts Nebraska’s anti-arbitration statute as not applicable to RRGs
  • Allied Professionals Insurance Co. RRG Adv: Courville. [2015] LRRA preempts state “direct action” statute, compelling arbitration under policy terms.
  • ALPS v. Ingaldson & Fitzgerald. [2016] 9th Circuit hold that the LRRA preempts Alaska state statute that overrules policy provision of RRG allowing recovery of attorneys fees on successful declaratory relief judgment.
  • Restoration RRG v. Wisconsin DSPS. (2018) 7th Circuit Court of Appeals “remands” case back to the district trial court where RRG & NRRA claim systemic ongoing discrimination against RRGs in Wisconsin.
  • Reis v. OOIDA, RRG. (2018)  Georgia Supreme Court unanimously rules that the LRRA preempts Georgia’s direct action statute aimed at trucking companies.

2. NAIC ADVOCACY

  • July 2009 letter to Scott Richardson, Chairman of the NAIC RRG Task Force, requesting that the NAIC amend its own “accreditation” standards developed for the regulation of Risk Retention Groups, in order to better “encourage” states’ compliance with the legal requirements of the LRRA.
  • Regular participation at NAIC meetings
  • Exempted foreign RRGs from NAIC Insurance Data Security Model Law
  • Proactive input on
  • Risk focused exams
  • Risk based capital
  • Model Audit Rule
  • Corporate Governance Standards
  • Amendments to RRG Handbook
  • Solvency testing and related ongoing issues

3. GAO ADVOCACY

  • 2012 letter from NRRA challenging the decision by the GAO to allow the NAIC to provide its “comments” in response to the January 10, 2012 GAO report and erroneous conclusions therein
  • 2011 Exhaustive Report by NRRA General Counsel to the Government Accountability Office (GAO)
  • Providing a documented history of anecdotal overregulation and perennial violations of federal law by non-domiciliary states.

4. LEGISLATIVE ADVOCACY

  • Lead coalition advocate
  • co-author of proposed federal legislation (HR 2126) to Modernize the Liability Risk Retention Act (LRRA) to include property insurance and a federal dispute resolution mechanism
  • Predecessor bills – R. 4802 &  H.R. 5792.
  • Support for other captive associations before the Federal Insurance Office (FIO) on Dodd-Frank and related issues

5. PARTIAL LIST OF EXAMPLES OF NRRA’S REGULATORY ADVOCACY

  • Aggressive New York Registration violations
  • New Mexico Fraud Bureau Assessment
  • Multi-state illegal registration fees
  • Cyber Liability and 2016 TRIA Federal Guidelines
  • Minnesota Delayed Processing of Registrations
  • Exempted foreign RRGs from New York’s Cyber Regulation
  • Revision of Virginia’s Unfair Claims Practices Amendment
  • CPA Audits Standard for RRGs
  • Asset Freezing Orders Monitoring
  • District of Columbia registration for service (of process) agents for RRGs
  • Louisiana proposed anti-self-liquidating limits legislation
  • South Carolina Anti-arbitration legislation
  • Nevada’s “10-1” rule dispute
  • Federal Housing Agency Rule-making
  • Captive managers as controlling persons under Holding Company Act
  • Integrated plan to rebut the California Anti-“Stop Loss” initiative with FIO
  • Defeat of New Mexico Legislation to bar RRGs writing Med Mal Coverage
  • Veto of discriminatory New Jersey Taxicab Legislation by Governor
  • Reversal of Imposition of Nevada Desk Audit fees on RRGs by Nevada Commissioner
  • Work on Nevada AB 74 re Contractual Liability Insurance Policies legislation
  • Medical Professional Liability Closed Claim Laws
  • Coalition to reduce exam fees
  • Inconsistent application of income and other “non-premium” taxation
  • Texas Medical Joint Underwriting Association
  • New Jersey/Indemnity Insurance Corporation of DC
  • Colorado RRG regulation situation
  • Labor Department dialogue with regulators on the stop loss issue
  • Ongoing dialogue between regulators on the “stop loss” issue
  • Kentucky Administrative Costs Assessment
  • Expanded multi-state examinations by non-domiciliary states
  • Escalated solvency and sensitivity testing
  • Financial Examination criteria
  • Repetitive and oppressive “registration” requirements imposed by California
  • Kentucky’s “back-down” on its Assessment for Administrative Costs for RRGs
  • Oklahoma Senate Bill 1022 debate and NRRA’s victory
  • Minnesota Desk Audit Fees
  • The Puerto Rico Risk Redemption Action preemption
  • Income Tax Filing Requirements
  • Excessive Examination Fees
  • North Carolina Fee Increase
  • South Carolina Fee Increase
  • four-states’ registration violations
  • Georgia DMV discrimination
  • Washington Med Mal Reporting requirements
  • Florida RRG Registration requirements, inter alia
  • Florida Hurricane Cat Fund Emergency Assessments
  • Monitoring of residual market assessments (e.g., JUAs) to ensure compliance
  • Informal monitoring of a number of issues including but not limited to McCarran Ferguson repeal legislation, Federal anti-arbitration legislation, coalition against reducing access to offshore reinsurance, and TARP, among others

[1] Revised 7-27-18