I 

114TH CONGRESS 

1ST SESSION H. R. 3794 

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 educational institutions, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 21, 2015 

Mr. ROSS (for himself and Mr. PERLMUTTER) 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 

educational institutions, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Nonprofit Property 

5 Protection Act’’. 

6 SEC. 2. COMMERCIAL INSURANCE. 

7 The Liability Risk Retention Act of 1986 is amend8 ed— 


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1 (1) in section 2(a) (15 U.S.C. 3901(a))— 

2 (A) in paragraph (6), by striking ‘‘and’’ at 

3 the end; 

4 (B) in paragraph (7)(B), by striking the 

5 period at the end and inserting ‘‘; and’’; and 

6 (C) by adding at the end the following new 

7 paragraph: 

8 ‘‘(8) ‘commercial insurance’ includes all forms 

9 of commercial insurance but does not include health, 

10 life, or disability insurance or workers compensation 

11 insurance or express contractual obligations owed to 

12 a consumer as a result of a personal, family, or 

13 household transaction, where a separate consider14 ation is paid by the consumer for the express con15 tractual obligation.’’; and 

16 (2) in section 3(b) (15 U.S.C. 3902(b))— 

17 (A) in paragraph (2), by striking ‘‘and’’ at 

18 the end; 

19 (B) in paragraph (3), by striking the pe20 riod at the end and inserting ‘‘; and’’; and 

21 (C) by adding at the end the following new 

22 paragraph: 

23 ‘‘(4) the provision of other lines of commercial 

24 insurance by a risk retention group to an organiza25 tion organized and operated exclusively for purposes 


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1 identified under section 501(c)(3) of the Internal 

2 Revenue Code of 1986 (26 U.S.C. 501(c)(3)), pro3 vided that— 

4 ‘‘(A) the risk retention group serves non5 profit organizations with tax-exempt status 

6 under section 501(c)(3) of the Internal Revenue 

7 Code of 1986 (26 U.S.C. 501(c)(3)) or edu8 cational institutions and education-related insti9 tutions that are nonprofit organizations or gov10 ernmental entities; 

11 ‘‘(B) the risk retention group has been 

12 chartered or licensed as an insurance company 

13 under the laws of a State and authorized to en14 gage in the business of insurance under the 

15 laws of such State; 

16 ‘‘(C) the risk retention group has engaged 

17 in the business of insurance pursuant to the 

18 charter or license and authority described in 

19 subparagraph (B) for a period not less than ten 

20 consecutive years; 

21 ‘‘(D) the risk retention group maintains 

22 capital and surplus of at least $10,000,000, as 

23 calculated in accordance with accounting prin24 ciples generally accepted in the United States; 

25 and 


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1 ‘‘(E) the total insured value of the risks 

2 covered by the initial policy for other forms of 

3 commercial insurance provided by a risk reten4 tion group to any one member of the risk reten5 tion group does not exceed $50,000,000, pro6 vided further that— 

7 ‘‘(i) the amount specified in this para8 graph shall, beginning one year after the 

9 date of the enactment of the Nonprofit 

10 Property Protection Act and on an annual 

11 basis thereafter, be adjusted by a percent12 age equal to the estimated percentage in13 crease, if any, in the Consumer Price 

14 Index, which adjustment shall be subject to 

15 approval by the risk retention group’s 

16 domicile state regulator; and 

17 ‘‘(ii) for purposes of this paragraph, 

18 any computation of total insured value 

19 shall exclude liability insurance coverage 

20 provided by a risk retention group to any 

21 member as authorized pursuant to this 

22 Act.’’. 

23 SEC. 3. CONFORMING AND CLARIFYING AMENDMENTS. 

24 The Liability Risk Retention Act of 1986 is further 

25 amended— 


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1 (1) in section 2(a)(4) (15 U.S.C. 3901(a)(4))— 

2 (A) in subparagraph (C)(i), by striking ‘‘a 

3 liability’’ and inserting ‘‘an’’; and 

4 (B) in subparagraph (G)— 

5 (i) in clause (i), by inserting ‘‘or other 

6 commercial’’ after ‘‘liability’’ each place 

7 such term appears; and 

8 (ii) in clause (ii), by inserting ‘‘or 

9 other commercial’’ after ‘‘liability’’; 

10 (2) in section 3 (15 U.S.C. 3902)— 

11 (A) in subsection (a)(1)(C), by inserting 

12 ‘‘or other commercial’’ after ‘‘liability’’; and 

13 (B) in subsection (d)(1)(B), by inserting 

14 ‘‘or other commercial’’ after ‘‘liability’’; and 

15 (3) in section 6(b) (15 U.S.C. 3905(b)), by in16 serting ‘‘or other forms of commercial’’ before ‘‘in17 surance by a risk retention group’’. 

18 SEC. 4. AMENDMENT TO SHORT TITLE. 

19 Section 1 of the Liability Risk Retention Act of 1986 

20 (15 U.S.C. 3901 note) is amended by striking ‘‘Liability 

21 Risk Retention Act of 1986’’ and inserting ‘‘Risk Reten22 tion Act of 1986’’. 

Æ 


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