Nonprofit Property Protection Act
This bill allows certain risk-retention groups that serve nonprofit organizations to offer additional types of commercial insurance.
[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6292 Introduced in House (IH)]
<DOC>
115th CONGRESS
2d Session
H. R. 6292
To amend the Liability Risk Retention Act of 1986 to expand the types
of commercial insurance authorized for risk retention groups serving
nonprofit organizations, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 28, 2018
Mr. Ross (for himself, Mr. Posey, Mr. MacArthur, and Mrs. Love)
introduced the following bill; which was referred to the Committee on
Financial Services
_______________________________________________________________________
A BILL
To amend the Liability Risk Retention Act of 1986 to expand the types
of commercial insurance authorized for risk retention groups serving
nonprofit organizations, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Nonprofit Property Protection Act''.
SEC. 2. COMMERCIAL INSURANCE.
The Liability Risk Retention Act of 1986 is amended--
(1) in section 2(a) (15 U.S.C. 3901(a))--
(A) in paragraph (6), by striking ``and'' at the
end;
(B) in paragraph (7)(B), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following new
paragraph:
``(8) `commercial insurance' includes all forms of
commercial insurance, except that such term does not include
health, life, or disability insurance or workers compensation
insurance.'';
(2) in section 3(b) (15 U.S.C. 3902(b))--
(A) in paragraph (2), by striking ``and'' at the
end;
(B) in paragraph (3), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following new
paragraph:
``(4) subject to subsection (i) of this section, the
provision of other lines of commercial insurance by a risk
retention group to an organization organized and operated
exclusively for purposes identified under section 501(c)(3) of
the Internal Revenue Code of 1986 (26 U.S.C. 501(c)(3)),
provided that--
``(A) the risk retention group serves nonprofit
organizations with tax-exempt status under section
501(c)(3) of the Internal Revenue Code of 1986 (26
U.S.C. 501(c)(3));
``(B) the risk retention group has been chartered
or licensed as an insurance company under the laws of a
State and authorized to engage in the business of
insurance under the laws of such State;
``(C) the risk retention group has engaged in the
business of insurance pursuant to the charter or
license and authority described in subparagraph (B) for
a period not less than ten consecutive years;
``(D) the risk retention group maintains capital
and surplus of at least $10,000,000, as calculated in
accordance with accounting principles generally
accepted in the United States; and
``(E) the total insured value of the risks covered
by the initial policy for other forms of commercial
insurance provided by a risk retention group to any one
member of the risk retention group does not exceed
$50,000,000, provided further that--
``(i) the amount specified in this
paragraph shall, beginning one year after the
date of the enactment of the Nonprofit Property
Protection Act and on an annual basis
thereafter, be adjusted by a percentage equal
to the estimated percentage increase, if any,
in the Consumer Price Index, which adjustment
shall be subject to approval by the risk
retention group's domicile state regulator; and
``(ii) for purposes of this paragraph, any
computation of total insured value shall
exclude liability insurance coverage provided
by a risk retention group to any member as
authorized pursuant to this Act.''; and
(3) in section 3 (15 U.S.C. 3902), by adding at the end the
following new subsection:
``(i) State Authority To Restrict Forms of Commercial Insurance
Other Than Liability.--
``(1) Requirements for restriction.--Subject to paragraph
(2), a risk retention group may not commence offering forms of
commercial insurance other than liability in a State if the
insurance regulatory authority for such State makes publicly
available on a website of such authority the identities of
three or more licensed admitted carriers in such State that--
``(A) have filed forms, rates, and rules for
monoline property coverage written on the property
portion of a businessowners policy and monoline
automobile physical damage coverage;
``(B) have active in-force policies of monoline
property and monoline automobile physical damage
coverage issued to nonprofit organizations in such
State at the time the information required under this
paragraph is initially made publicly available; and
``(C) the monoline property and monoline automobile
physical damage coverages offered by each such carrier
are easily accessible in such State to nonprofit
organizations through the independent broker
marketplace.
``(2) Treatment of risk retention groups with in-force
policies.--Any risk retention group having an active, in-force
commercial insurance policy authorized in subsection (b)(4) in
a State at the time that the information required under
paragraph (1) for such State is initially made publicly
available, shall remain authorized to continue to write
commercial insurance pursuant to subsection (b)(4).
``(3) Definition.--For purposes of this subsection, the
term `nonprofit organization' means an organization with tax-
exempt status under section 501(c)(3) of the Internal Revenue
Code of 1986 (26 U.S.C. 501(c)(3)).''.
SEC. 3. CONFORMING AND CLARIFYING AMENDMENTS.
The Liability Risk Retention Act of 1986 is further amended--
(1) in section 2(a)(4) (15 U.S.C. 3901(a)(4))--
(A) in subparagraph (C)(i), by striking ``a
liability'' and inserting ``an''; and
(B) in subparagraph (G)--
(i) in clause (i), by inserting ``or other
commercial'' after ``liability'' each place
such term appears; and
(ii) in clause (ii), by inserting ``or
other commercial'' after ``liability'';
(2) in section 3 (15 U.S.C. 3902)--
(A) in subsection (a)(1)(C), by inserting ``or
other commercial'' after ``liability''; and
(B) in subsection (d)(1)(B), by inserting ``or
other commercial'' after ``liability''; and
(3) in section 6(b) (15 U.S.C. 3905(b)), by inserting ``or
other forms of commercial'' before ``insurance by a risk
retention group''.
SEC. 4. AMENDMENT TO SHORT TITLE.
Section 1 of the Liability Risk Retention Act of 1986 (15 U.S.C.
3901 note) is amended by striking ``Liability Risk Retention Act of
1986'' and inserting ``Risk Retention Act of 1986''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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