New Legislative Efforts in Florida and Reputational Marketing Report

NRRA Plans Third Visit to Florida as Discrimination Continues

As predicted by the Executive Office this past March, the governor In Florida has now signed into law H215, the bill amending Florida’s financial responsibility law, adding language clarifying the fact that, as to commercial auto coverage, RRGs are indeed insurance companies “authorized to do business” in the state.

In response to the dangerous threat posed by the earlier 2023 legislative efforts to illegally change Florida law affecting RRGs, NRRA had submitted two (2) alternative drafts of proposed bill language addressing two Florida Statutes: section 324.021, defining auto financial responsibility in the state; and section 627.944, defining foreign risk retention groups. See NRRA website news articles for a history of these efforts.

While neither of those statutes technically violated the LRRA, the state’s definitions of “authorized insurers” versus “insurers authorized to do business in the state” had been anecdotally used to thwart RRG operations in certain areas, as has been done and continues to be done in many other states. So, following vigorous opposition by NRRA, after last year’s bill(s) died, NRRA went back to work for the 2024 legislative session with the two alternative bills, the foregoing being the one that passed.

According to NRRA chairman, Tim Sullivan (Recreation RRG CEO), “the association is now in preparation mode to go back again to the state with our companion bill for the 2025 Legislative Session, this time seeking another much-needed amendment to section 627.944, the statute presently defining foreign risk retention groups."

While the amendment to section 324.021 may anecdotally solve the problem of acceptance of RRGs’ commercial auto coverage, what is now needed is to make the same clarification to section 627.944, which will likewise simply provide that RRGs are insurance companies authorized to do business in the State. This will solve the much broader confusion in Florida caused by misapplication of the law erroneously requiring that they be “authorized insurers.” (Florida’s definition of an “authorized insurer” is one which is “licensed and admitted” in the state, to be distinguished from RRGs which by law are only to be licensed and admitted in their state[s] of domicile.) 

“Stay tuned for further developments, as our executive director heads back to Tallahassee later this year,” he added. 

NRRA Continues to Confront Reputational Challenges to RRGs in the Marketplace

“Lest you think that Florida is the only state where RRGs face reputational challenges, you can think again,” says Jon Harkavy (Risk Services, Inc.) NRRA Second Vice-Chair and chairman of our Government Affairs subcommittee that vets the ongoing plethora of illegal challenges to RRG(s) operations. 

“These include but are not limited to federally preempted flawed laws, partisan lobbying and overreaching regulators. Partisan politics has in recent years now added insult to injury in this context." 

 “Efforts to keep these matters in check are no easy task,” he says, pointing to NRRA’s vigorous amicus curiae (friend of the court) brief before the U.S. Supreme Court filed in May, 2024. (Certiorari denied.) “NRRA’s Executive Director has another amicus brief waiting to be filed in Texas federal court where the Texas Department of Insurance (TDI) decided to illegally ban an insurance policy of a foreign RRG actually domiciled in Hawaii, which like most of the others will jeopardize numerous RRGs in the surrounding states.”

In California, to name another example in the legion of cases RRGS face, the Contractors State License Board (CSLB) claims its need to adhere to a much earlier adopted state law and continues to steadfastly refuse to issue a contractors license if that contractor is employed by a Limited Liability Company (LLC) which is insured by an RRG.

We have alerted the NAIC that some thirty-two (32) states have laws on their books which are, in whole or in part, preempted by the LRRA.  

Captive Managers Caucus Formed and Will Meet at VCIA

“In an effort to emphasize the importance of more industry-wide strength in numbers, the NRRA board designed its newest initiative we are calling our Captive Managers Caucus,” says Tim Sullivan, adding, “the purpose of which will be to nationalize the need for education, communication and more vigorous support of the entire RRG industry to address these issues which are escalating. Our first meeting will take place on Wednesday, August 14, 2024, during the VCIA. Subscribe to our newsletter for further updates.

GAC Transportation Subcommittee Formed Following RRG Leaders Summit in March 2024

Representatives of multiple captive managers in the transportation sector attending NRRA’s RRG Leaders Summit in March volunteered to be part of a new Transportation Committee. The following day, the NRRA board unanimously obliged. That committee is now tasked with developing a platform to follow all upcoming legislative and regulatory initiatives being sought everywhere nationwide. These new leaders will be reporting their progress at Conference. 

Limited by our space here, the above items are only anecdotal, as the reader can see, in many states’ misinformation about RRGs abounds, i.e., the reason why NRRA exists.  Subscribe to our newsletter for further updates.

Register Now for NRRA’s National Conference November 11-13, 2024 at the Sofitel Chicago Magnificent Mile, Chicago

Register to attend the conference and reserve your hotel room today.