Nonprofit Property Protection Act

Summary: Nonprofit Property Protection Act This bill:  amends the Liability Risk Retention Act of 1986 to rename it the Risk Retention Act of 1986; and  exclude from &quot;commercial insurance&quot; covered by the Act any health, life, or disability insurance or workers compensation insurance or express contractual obligations owed to a consumer as a result of a personal, family, or household transaction, where the consumer pays a separate consideration for the express contractual obligation.   The bill expands the kinds of state laws pertaining to business insurance from which a risk retention group shall be exempt to include laws pertaining to other lines of commercial insurance offered by a risk retention group to an entity organized and operated exclusively as a federal tax-exempt nonprofit charitable or educational institution, as long as the group meets specified criteria. 

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 but does not include health, life, or 
        disability insurance or workers compensation insurance or 
        express contractual obligations owed to a consumer as a result 
        of a personal, family, or household transaction, where a 
        separate consideration is paid by the consumer for the express 
        contractual obligation.''; and
            (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) 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)) or educational institutions and 
                education-related institutions that are nonprofit 
                organizations or governmental entities;
                    ``(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.''.

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''.