New measure to include commercial property insurance
NEW YORK (March 11, 2010) — The Risk and Insurance Management Society (RIMS) today announced its support of legislation that would amend and expand the Liability Risk Retention Act (LRRA) to include commercial property insurance.
Reintroduced by Rep. Dennis Moore (D-KS), the measure, (H.R. 4802, the “Risk Retention Modernization Act of 2010”) marks the second consecutive congress that Rep. Moore has led efforts to extend the LRRA’s reach to cover commercial property insurance to address potential capacity shortages.
The LRRA permits Risk Retention Groups to self insure risk on a group basis and create Risk Purchasing Groups to allow insurers to market commercial insurance on a group basis.
“The new legislation, if passed, would provide another critical venue for insurance purchasers to secure commercial property insurance,” says Scott Clark, RIMS board member and risk and benefits officer for Miami-Dade County Public Schools. “Such an option can make insurance more affordable, especially when natural disasters in some U.S. regions have made it more difficult to purchase commercial property insurance. Many liability risks are related to property owned by business entities and non-profit organizations, and this bill will enable those businesses to obtain coverages that might not otherwise be readily available.”
Rep. Moore is joined by cosponsors Rep. Tom Campbell (R-CA) and Rep. Suzanne Kosmas (D-FL).