Risk Retention Act

The act governs risk retention groups and purchasing groups — arrangements through which members obtain or jointly purchase insurance — and sets the terms on which each may operate in a state. It establishes charter and license requirements for groups domiciled in the state, notice and registration obligations for groups chartered elsewhere and for purchasing groups, limits on the coverage that may be written or bought, a licensing duty for agents and brokers, and a tax on premiums collected, while exempting purchasing groups from certain laws that would otherwise restrict group purchase of insurance. It also gives insurance regulators administrative and rulemaking authority over both types of group, including examination of financial condition, application of unfair claims settlement and anti-fraud standards, delinquency proceedings, required disclosures to purchasers, and penalties for violations.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.