FOR RELEASE APRIL 4, 2006          

CONTACT:

Erica Massey, Executive Director

877-963-8050

Coalition Leaders Call for Congress to Expand

RRG Coverage to Include Property, Other Lines

WASHINGTON, D.C. – Expansion of the federal Liability Risk Retention Act (LRRA) to additional lines of insurance such as property insurance and excess workers' compensation insurance was recommended today by the Steering Committee of the American Risk Retention Coalition (ARRC).

“We see no reason why this valuable form of insurance should be limited to liability coverage,” said ARRC Chairman Dick Goff.  “In fact, we will recommend to Congress that ‘liability’ be dropped from the name of the law, to become simply the Risk Retention Act.”

ARRC was formed earlier this year to serve as an advocate for risk retention – a form of self-insurance that is available to members of trades or professions.  Under LRRA, risk retention groups may insure liability risks such as medical malpractice, transportation, home building and many others.  Risk retention groups that are licensed in any state may operate in every other state under federal preemption.

“The reasons why Congress has authorized RRGs to provide liability insurance to their members apply equally to their ability to offer certain other lines as well,” Goff said.  “Paramount of these is the restricted availability of traditional commercial insurance that has occurred in the aftermath of Hurricane Katrina and other natural disasters of 2005."

“In many states it is very difficult or impossible to obtain new coverage for property risks, as well as excess insurance for workers’ compensation programs,” Goff said.

With its membership of national and state insurance trade associations, as well as risk retention groups and others, ARRC will press for expansion of insurance lines when Congress reviews possible improvements in the LRRA, which is expected to occur this spring.

More information about ARRC is available at www.arrcoalition.org.