I 

116TH CONGRESS 

1ST SESSION H. R. 4523 

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 

SEPTEMBER 26, 2019 

Mr. GREEN of Texas (for himself, Mr. LAWSON of Florida, Mr. PANETTA, Ms. 

JACKSON LEE, Mr. MEEKS, Mr. GARCI ́A of Illinois, and Mr. CLAY) 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. 

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’’. 


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1 SEC. 2. COMMERCIAL INSURANCE. 

2 The Liability Risk Retention Act of 1986 is amend3 ed— 

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

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

6 the end; 

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

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

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

10 paragraph: 

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

12 of commercial insurance, except that such term does 

13 not include health, life, or disability insurance or 

14 workers compensation insurance.’’; 

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

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

17 the end; 

18 (B) in paragraph (3), by striking the pe19 riod at the end and inserting ‘‘; and’’; and 

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

21 paragraph: 

22 ‘‘(4) subject to subsection (i) of this section, the 

23 provision of other lines of commercial insurance by 

24 a risk retention group to an organization organized 

25 and operated exclusively for purposes identified 

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


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1 Code of 1986 (26 U.S.C. 501(c)(3)), provided 

2 that— 

3 ‘‘(A) the risk retention group serves non4 profit organizations with tax-exempt status 

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

6 Code of 1986 (26 U.S.C. 501(c)(3)); 

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

8 chartered or licensed as an insurance company 

9 under the laws of a State and authorized to en10 gage in the business of insurance under the 

11 laws of such State; 

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

13 in the business of insurance pursuant to the 

14 charter or license and authority described in 

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

16 consecutive years; 

17 ‘‘(D) the risk retention group maintains 

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

19 calculated in accordance with accounting prin20 ciples generally accepted in the United States; 

21 and 

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

23 covered by the initial policy for other forms of 

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1 tion group does not exceed $50,000,000, pro2 vided further that— 

3 ‘‘(i) the amount specified in this para4 graph shall, beginning one year after the 

5 date of the enactment of the Nonprofit 

6 Property Protection Act and on an annual 

7 basis thereafter, be adjusted by a percent8 age equal to the estimated percentage in9 crease, if any, in the Consumer Price 

10 Index, which adjustment shall be subject to 

11 approval by the risk retention group’s 

12 domicile state regulator; and 

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

14 any computation of total insured value 

15 shall exclude liability insurance coverage 

16 provided by a risk retention group to any 

17 member as authorized pursuant to this 

18 Act.’’; and 

19 (3) in section 3 (15 U.S.C. 3902), by adding at 

20 the end the following new subsection: 

21 ‘‘(i) STATE AUTHORITY TO RESTRICT FORMS OF

22 COMMERCIAL INSURANCE OTHER THAN LIABILITY.— 

23 ‘‘(1) REQUIREMENTS FOR RESTRICTION.—Sub24 ject to paragraph (2), a risk retention group may 

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1 ance other than liability in a State if the insurance 

2 regulatory authority for such State makes publicly 

3 available on a website of such authority the identi4 ties of three or more licensed admitted carriers in 

5 such State that— 

6 ‘‘(A) have filed forms, rates, and rules for 

7 monoline property coverage written on the prop8 erty portion of a businessowners policy and 

9 monoline automobile physical damage coverage; 

10 ‘‘(B) have active in-force policies of 

11 monoline property and monoline automobile 

12 physical damage coverage issued to nonprofit 

13 organizations in such State at the time the in14 formation required under this paragraph is ini15 tially made publicly available; and 

16 ‘‘(C) the monoline property and monoline 

17 automobile physical damage coverages offered 

18 by each such carrier are easily accessible in 

19 such State to nonprofit organizations through 

20 the independent broker marketplace. 

21 ‘‘(2) TREATMENT OF RISK RETENTION GROUPS

22 WITH IN-FORCE POLICIES.—Any risk retention 

23 group having an active, in-force commercial insur24 ance policy authorized in subsection (b)(4) in a 

25 State at the time that the information required 


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1 under paragraph (1) for such State is initially made 

2 publicly available, shall remain authorized to con3 tinue to write commercial insurance pursuant to 

4 subsection (b)(4). 

5 ‘‘(3) DEFINITION.—For purposes of this sub6 section, the term ‘nonprofit organization’ means an 

7 organization with tax-exempt status under section 

8 501(c)(3) of the Internal Revenue Code of 1986 (26 

9 U.S.C. 501(c)(3)).’’. 

10 SEC. 3. CONFORMING AND CLARIFYING AMENDMENTS. 

11 The Liability Risk Retention Act of 1986 is further 

12 amended— 

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

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

15 liability’’ and inserting ‘‘an’’; and 

16 (B) in subparagraph (G)— 

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

18 commercial’’ after ‘‘liability’’ each place 

19 such term appears; and 

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

21 other commercial’’ after ‘‘liability’’; 

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

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

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


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

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

3 (3) in section 6(b) (15 U.S.C. 3905(b)), by in4 serting ‘‘or other forms of commercial’’ before ‘‘in5 surance by a risk retention group’’. 

6 SEC. 4. AMENDMENT TO SHORT TITLE. 

7 Section 1 of the Liability Risk Retention Act of 1986 

8 (15 U.S.C. 3901 note) is amended by striking ‘‘Liability 

9 Risk Retention Act of 1986’’ and inserting ‘‘Risk Reten10 tion Act of 1986’’. 

Æ 


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