I 

110TH CONGRESS 

2D SESSION H. R. 5792 

To amend the Liability Risk Retention Act of 1986 to increase insurance 

competition and available coverage for consumers. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 15, 2008 

Mr. MOORE of Kansas (for himself, Ms. PRYCE of Ohio, Mr. CAMPBELL of 

California, and Mr. KLEIN of Florida) 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 increase insurance competition and available coverage for 

consumers. 

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 ‘‘Increasing Insurance 

5 Coverage Options for Consumers Act of 2008’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 

8 (1) The establishment of risk retention groups 

9 and risk purchasing groups have provided a successVerDate Aug 31 2005 21:50 Apr 18, 2008 Jkt 069200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H5792.IH H5792

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1 ful model for the sale of insurance across State 

2 lines, reducing costs, providing alternative mecha3 nisms for coverage to increase competitive options 

4 for consumers, and promoting greater premium com5 petition among insurers, especially in areas or for 

6 risks where coverage is very limited and relatively 

7 unaffordable. 

8 (2) There have been abuses of the Liability 

9 Risk Retention Act of 1986 (15 U.S.C. 3901 et seq.) 

10 and increasing concerns by legislators and regulators 

11 about the solvency and policyholder control of man12 agement in many of the more recently formed risk 

13 retention groups. 

14 (3) There have also been inappropriate efforts 

15 by certain States to regulate, directly or indirectly, 

16 risk retention groups or risk purchasing groups in 

17 an extra-territorial manner precluded by section 3 

18 and 4 of the Liability Risk Retention Act of 1986 

19 (15 U.S.C. 3902 and 3903). 

20 (4) The Liability Risk Retention Act of 1986 

21 should be strengthened by— 

22 (A) requiring uniform corporate govern23 ance, disclosure, and financial accounting 

24 standards; 


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1 (B) clarifying and strengthening required 

2 compliance with certain State consumer protec3 tion laws; 

4 (C) allowing risk retention groups under 

5 the new standards to provide certain commer6 cial property insurance coverage; 

7 (D) allowing risk purchasing groups to 

8 contract more broadly for commercial property 

9 coverage as well as coverage for all forms of li10 ability insurance; and 

11 (E) reinforcing a foundation of the Act 

12 that exempts risk retention groups and risk 

13 purchasing groups from laws of a State other 

14 than their chartering State, except as specifi15 cally provided in the Act (15 U.S.C. 3901 et 

16 seq.). 

17 (5) Fixing and expanding the Liability Risk Re18 tention Act of 1986 will reduce solvency exposure 

19 and management abuses of risk retention groups 

20 while providing more available competitive insurance 

21 coverage for consumers. 


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1 SEC. 3. EXPANSION OF THE LIABILITY RISK RETENTION 

2 ACT OF 1986 TO INCLUDE PROPERTY INSUR3 ANCE. 

4 The Liability Risk Retention Act of 1986 (15 U.S.C. 

5 3901 et seq.) is amended— 

6 (1) in section 2 (15 U.S.C. 3901)— 

7 (A) in subsection (a)— 

8 (i) in paragraph (4)— 

9 (I) in subparagraph (C)(i) by 

10 striking ‘‘a liability’’ and inserting 

11 ‘‘an’’; and 

12 (II) in subparagraph (G)(i), by 

13 inserting ‘‘or commercial property’’ 

14 after ‘‘liability’’; 

15 (ii) in paragraph (5)(A), by inserting 

16 ‘‘or commercial property’’ after ‘‘liability’’; 

17 (iii) in paragraph (6), by striking 

18 ‘‘and’’ at the end; 

19 (iv) in paragraph (7), by striking the 

20 final period and inserting ‘‘; and’’; and 

21 (v) by adding at the end the following 

22 new paragraph: 

23 ‘‘(8) ‘commercial property insurance’ means 

24 commercial lines of real or personal property insur25 ance, including, with regard to excess insurance, in26 surance against loss or damage from any and all 


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1 hazard or cause and against loss consequential upon 

2 such loss or damage, including business interruption 

3 insurance, other than non-contractual legal liability 

4 for such loss or damage.’’; and 

5 (B) in subsection (b), by inserting ‘‘, com6 mercial property’’ after ‘‘of liability’’; 

7 (2) in section 3 (15 U.S.C. 3902)— 

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

9 ‘‘or commercial property’’ after ‘‘liability’’; 

10 (B) in subsection (b), by inserting ‘‘or 

11 commercial property’’ after ‘‘liability’’ each 

12 place it appears; and 

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

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

15 (3) in section 6(b) (15 U.S.C. 3905(b)), by in16 serting ‘‘or commercial property’’ after ‘‘liability’’ 

17 each place it appears. 

18 SEC. 4. EXPANSION OF PURCHASING GROUPS TO INCLUDE 

19 COMMERCIAL PROPERTY INSURANCE. 

20 Section 4 of the Liability Risk Retention Act of 1986 

21 (15 U.S.C. 3903) is amended— 

22 (1) in subsection (b)— 

23 (A) in paragraph (1), by inserting ‘‘or 

24 commercial property’’ after ‘‘liability’’; and 

25 (B) in paragraph (2)— 


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1 (i) by redesignating subparagraphs 

2 (B) and (C) as subparagraphs (C) and 

3 (D), respectively; and 

4 (ii) by inserting after subparagraph 

5 (A) the following new subparagraph: 

6 ‘‘(B) commercial property insurance;’’; and 

7 (2) in subsection (d)(1)(B), by inserting ‘‘and 

8 commercial property’’ after ‘‘liability’’. 

9 SEC. 5. CORPORATE GOVERNANCE AND FINANCIAL AC10 CREDITATION STANDARDS. 

11 (a) RISK RETENTION GROUP DEFINITION.—Section 

12 2(a) of the Liability Risk Retention Act of 1986 (15 

13 U.S.C. 3901(a)) is amended— 

14 (1) in paragraph (4)— 

15 (A) in subparagraph (C), by striking 

16 clauses (i) and (ii) and inserting the following: 

17 ‘‘(i) is chartered or licensed as an in18 surance company and authorized to engage 

19 in the business of insurance under the laws 

20 of a State with respect to providing liabil21 ity or commercial property insurance as a 

22 risk retention group; or 

23 ‘‘(ii) met the definition of a risk re24 tention group as defined in this paragraph 

25 on the day before the effective date of the 


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1 Increasing Insurance Coverage Options for 

2 Consumers Act of 2007.’’; 

3 (B) in subparagraph (G)(ii), by striking ‘‘; 

4 and’’ and inserting ‘‘;’’; 

5 (C) in subparagraph (H), by striking the 

6 period and inserting a semicolon; and 

7 (D) by adding at the end the following new 

8 subparagraphs: 

9 ‘‘(I) which— 

10 ‘‘(i) in the case of a corporation or 

11 other limited liability association other 

12 than a corporation or association referred 

13 to in subparagraph (C)(ii), is licensed or 

14 chartered in a State that has adopted cor15 porate governance standards that apply to 

16 risk retention groups licensed or author17 ized by the State that are materially iden18 tical to— 

19 ‘‘(I) the corporate governance 

20 standards described in section 8; or 

21 ‘‘(II) similar standards relating 

22 to corporate governance that apply to 

23 risk retention groups that a State rea24 sonably determines provide at least as 

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1 ferred to in subclause (I) for the 

2 members of such group chartered in 

3 the State; and 

4 ‘‘(ii) in the case of a corporation or 

5 other limited liability association referred 

6 to in subparagraph (C)(ii), has imple7 mented the requirements of the corporate 

8 governance standards described in para9 graphs (1) through (7) of section 8 or 

10 similar standards referred to clause (i)(II); 

11 ‘‘(J) which, prior to providing coverage for 

12 commercial property insurance, is licensed or 

13 chartered in a State that has adopted require14 ments, as appropriate, for examination author15 ity, audits by certified public accountants, ac16 counting practices and procedures, filings with 

17 the National Association of Insurance Commis18 sioners, valuation of investments, safety and li19 quidity of investments, liabilities and reserves, 

20 actuarial opinions, capital and surplus, correc21 tive actions, holding company systems, risk lim22 itations, and reinsurance ceded rules; and 

23 ‘‘(K) which, prior to providing coverage for 

24 commercial property insurance, is licensed or 

25 chartered in a State that has adopted minimum 


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1 requirements for safety and soundness, includ2 ing requirements that— 

3 ‘‘(i) prohibit groups from under4 writing any single risk exposure, such as 

5 wind losses in a coastal region or earth6 quake coverage on a single fault, that 

7 could unduly impair the group’s capital, 

8 similar to such requirements for other in9 surance companies or for risk retention 

10 groups in other States; 

11 ‘‘(ii) establish minimum standards for 

12 size or sophistication of risk retention 

13 group members; and 

14 ‘‘(iii) establish solvency requirements 

15 for risk retention groups.’’; 

16 (2) in paragraph (6), by striking ‘‘; and’’ and 

17 inserting ‘‘;’’; 

18 (3) in paragraph (7), by striking the period and 

19 inserting ‘‘; and’’; and 

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

21 paragraph: 

22 ‘‘(8) ‘materially identical’ means requiring or 

23 prohibiting identical conduct with respect to cor24 porate governance by risk retention groups, notwith25 standing that the standards adopted by a State may 


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1 differ with respect to conduct required or prohibited 

2 with respect to other activities or entities.’’. 

3 (b) CODIFICATION OF STANDARDS.—The Liability 

4 Risk Retention Act of 1986 (15 U.S.C. 3901 et seq.) is 

5 amended by adding at the end the following new section: 

6 ‘‘CORPORATE GOVERNANCE STANDARDS

7 ‘‘SEC. 8. Corporate governance standards described 

8 in this section are standards that require the following: 

9 ‘‘(1) INDEPENDENT DIRECTORS.— 

10 ‘‘(A) IN GENERAL.—The board of directors 

11 of the risk retention group shall have a majority 

12 of independent directors. If the risk retention 

13 group is a reciprocal, then the attorney-in-fact 

14 would be required to adhere to the same stand15 ards regarding independence of operation and 

16 governance as imposed on the risk retention 

17 group’s board of directors or subscribers advi18 sory committee under these standards and, to 

19 the extent permissible under State law, service 

20 providers of a reciprocal risk retention group 

21 should contract with the risk retention group 

22 and not the attorney-in-fact. 

23 ‘‘(B) INDEPENDENCE.—No director quali24 fies as independent unless the board of direc25 tors affirmatively determines that the director 

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1 tion group. Each risk retention group shall dis2 close these determinations to its domestic regu3 lator, at least annually. For this purpose— 

4 ‘‘(i) any person that is a direct or in5 direct owner of, or subscriber in, a risk re6 tention group defined in section 

7 2(a)(4)(E)(ii) is considered to be inde8 pendent; and 

9 ‘‘(ii) any person that is an officer, di10 rector, or employee of a person described 

11 in clause (i) is considered to be inde12 pendent, unless some other position of 

13 such officer, director, or employee con14 stitutes a material relationship. 

15 ‘‘(C) MATERIAL RELATIONSHIP.—A mate16 rial relationship between a person and a risk re17 tention group includes the following: 

18 ‘‘(i) The receipt in any one 12-month 

19 period of compensation or payment of any 

20 other item of value by such person, a mem21 ber of such person’s immediate family, or 

22 any business with which such person is af23 filiated from the risk retention group or a 

24 consultant or service provider to the risk 

25 retention group is greater than or equal to 


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1 five percent of the risk retention group’s 

2 gross written premium for such 12-month 

3 period or two percent of its surplus, which4 ever is greater, as measured at the end of 

5 any fiscal quarter falling in such a 12- 

6 month period. Such person or immediate 

7 family member of such person is not inde8 pendent until one year after such person’s 

9 compensation from the risk retention 

10 group falls below the threshold. 

11 ‘‘(ii) A relationship with an auditor as 

12 follows: a director or an immediate family 

13 member of a director who is affiliated with 

14 or employed in a professional capacity by 

15 a present or former internal or external 

16 auditor of the risk retention group is not 

17 independent until one year after the end of 

18 the affiliation, employment, or auditing re19 lationship. 

20 ‘‘(iii) A relationship with a related en21 tity as follows: a director or immediate 

22 family member of a director who is em23 ployed as an executive officer of another 

24 company where any of the risk retention 

25 group’s present executives serve on that 


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1 risk retention group’s board of directors is 

2 not independent until one year after the 

3 end of such service or the employment re4 lationship. 

5 ‘‘(2) SERVICE PROVIDER CONTRACTS.— 

6 ‘‘(A) IN GENERAL.—The term of any ma7 terial service provider contract with the risk re8 tention group shall not exceed five years. Any 

9 such contract, or its renewal, shall require the 

10 approval of the majority of the risk retention 

11 group’s independent directors. The risk reten12 tion group’s board of directors or its insured 

13 owners shall have the right to terminate any 

14 service provider, audit, or actuarial contracts at 

15 any time for cause after providing adequate no16 tice as defined in the contract. The service pro17 vider contract is deemed material if the amount 

18 to be paid for such contract is greater than or 

19 equal to five percent of the risk retention 

20 group’s annual gross written premium or two 

21 percent of its surplus, whichever is greater. 

22 ‘‘(B) SERVICE PROVIDERS.—For purposes 

23 of subparagraph (A), service providers includes 

24 captive managers, auditors, accountants, actu25 aries, investment advisors, lawyers, managing 


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1 general underwriters, or other party responsible 

2 for underwriting, determination of rates, collec3 tion of premium, adjusting and settling claims, 

4 or the preparation of financial statements. In 

5 this subparagraph, the term ‘lawyer’ does not 

6 include defense counsel retained by the risk re7 tention group to defend claims, unless the 

8 amount of fees paid to such lawyer is greater 

9 than or equal to five percent of the risk reten10 tion group’s gross written premium for such 12- 

11 month period or two percent of its surplus, 

12 whichever is greater, as measured at the end of 

13 any fiscal quarter falling in such a 12-month 

14 period. 

15 ‘‘(C) PRIOR APPROVAL.—Any contract 

16 with a service provider that has a material rela17 tionship with the risk retention group shall be 

18 submitted for prior approval by the domestic 

19 regulator at least 30 days prior to the effective 

20 date. No service provider contract involving a 

21 material relationship referred to in paragraph 

22 (1)(C) shall be entered into unless the risk re23 tention group has notified the Commissioner in 

24 writing of its intention to enter into such trans25 action at least 30 days prior thereto and the 


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1 Commissioner has not disapproved it within 

2 such period. 

3 ‘‘(3) WRITTEN CHARTER.—The risk retention 

4 group’s board of directors shall have a written policy 

5 in the Bylaws that requires the board to— 

6 ‘‘(A) assure that all insured owners of the 

7 risk retention group receive evidence of owner8 ship interest; 

9 ‘‘(B) develop a set of governance standards 

10 applicable to the risk retention group; 

11 ‘‘(C) oversee the evaluation of the risk re12 tention group’s management; 

13 ‘‘(D) review and approve all material serv14 ice provider contracts; 

15 ‘‘(E) approve the compensation for all 

16 service providers; and 

17 ‘‘(F) review and approve, at least annu18 ally— 

19 ‘‘(i) the risk retention group’s goals 

20 and objectives relevant to the compensation 

21 of officers and service providers; 

22 ‘‘(ii) the officers’ and service pro23 viders’ performance in light of those goals 

24 and objectives; and 


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1 ‘‘(iii) the continued engagement of the 

2 officers and material service providers. 

3 ‘‘(4) AUDIT COMMITTEE.— 

4 ‘‘(A) IN GENERAL.—The risk retention 

5 group shall have an audit committee composed 

6 of at least three independent board members as 

7 described in paragraph (1). A non-independent 

8 board member may participate in the activities 

9 of the audit committee, if invited by the mem10 bers, but cannot be a member of such com11 mittee. 

12 ‘‘(B) WRITTEN CHARTER.—The audit 

13 committee shall have a written charter that de14 fines the committee’s purpose, which, at a min15 imum, must be to— 

16 ‘‘(i) assist board oversight of (1) the 

17 integrity of the financial statements, (2) 

18 the compliance with legal and regulatory 

19 requirements, (3) the qualifications, inde20 pendence, and performance of the inde21 pendent auditor and actuary, and (4) the 

22 performance of the captive manager, man23 aging general underwriter, or other party 

24 or parties responsible for underwriting, de25 termination of rates, collection of premium, 


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1 adjusting or settling claims or the prepara2 tion of financial statements; 

3 ‘‘(ii) discuss the annual audited finan4 cial statements and quarterly financial 

5 statements with management; 

6 ‘‘(iii) discuss the annual audited fi7 nancial statements with its independent 

8 auditor and, if advisable, discuss its quar9 terly financial statements with its inde10 pendent auditor; 

11 ‘‘(iv) discuss policies with respect to 

12 risk assessment and risk management; 

13 ‘‘(v) meet separately and periodically, 

14 either directly or through a designated rep15 resentative of the committee, with manage16 ment and independent auditors; 

17 ‘‘(vi) review with the independent 

18 auditor any audit problems or difficulties 

19 and management’s response; 

20 ‘‘(vii) set clear hiring policies of the 

21 risk retention group for employees or 

22 former employees of the independent audi23 tor; 

24 ‘‘(viii) require the external auditor to 

25 rotate the lead (or coordinating) audit 


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1 partner having primary responsibility for 

2 the risk retention group’s audit and the 

3 audit partner responsible for reviewing 

4 that audit so that neither individual per5 forms audit services for more than five 

6 consecutive fiscal years; and 

7 ‘‘(ix) report regularly to the board of 

8 directors. 

9 ‘‘(C) WAIVER.—The domestic regulator 

10 may waive the requirement to establish an audit 

11 committee composed of independent directors if 

12 the risk retention group is able to demonstrate 

13 to the domestic regulator that it is impracti14 cable to do so and the risk retention group’s 

15 board of directors itself is otherwise able to ac16 complish the purposes of an audit committee, as 

17 described in subparagraph (B). 

18 ‘‘(5) GOVERNANCE STANDARDS.—The risk re19 tention group shall adopt and disclose governance 

20 standards that include— 

21 ‘‘(A) a process by which the directors are 

22 elected by the insured owners; 

23 ‘‘(B) director qualification standards; 

24 ‘‘(C) director responsibilities; 


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1 ‘‘(D) director access to management and, 

2 as necessary and appropriate, independent advi3 sors; 

4 ‘‘(E) director compensation; 

5 ‘‘(F) director orientation and continuing 

6 education; 

7 ‘‘(G) management succession; and 

8 ‘‘(H) annual performance evaluation of the 

9 board. 

10 ‘‘(6) BUSINESS CONDUCT AND ETHICS.—The 

11 risk retention group shall adopt and disclose a code 

12 of business conduct and ethics for directors, officers, 

13 and employees and promptly disclose to the board of 

14 directors any waivers of the code for directors or ex15 ecutive officers, which shall include— 

16 ‘‘(A) conflicts of interest; 

17 ‘‘(B) corporate opportunities; 

18 ‘‘(C) confidentiality; 

19 ‘‘(D) fair dealing; 

20 ‘‘(E) protection and proper use of risk re21 tention group assets; 

22 ‘‘(F) compliance with all applicable laws, 

23 rules, and regulations; and 


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1 ‘‘(G) requiring the reporting of any illegal 

2 or unethical behavior that affects the operation 

3 of the risk retention group. 

4 ‘‘(7) REPORTING NON-COMPLIANCE.—The cap5 tive manager or chief executive officer of the risk re6 tention group shall promptly notify the domestic reg7 ulator in writing if either becomes aware of any ma8 terial non-compliance with any of the risk retention 

9 group’s governance standards. 

10 ‘‘(8) ENFORCEMENT.—The risk retention 

11 group’s domestic regulator may take appropriate 

12 regulatory action against any director or officer of 

13 the risk retention group or its captive manager pur14 suant to its laws and regulations if the risk retention 

15 group or captive manager violates these governance 

16 standards.’’. 

17 SEC. 6. NO PARTICIPATION IN STATE GUARANTY FUNDS. 

18 Section 3 of the Liability Risk Retention Act of 1986 

19 (15 U.S.C. 3902) is amended by adding at the end the 

20 following new subsection: 

21 ‘‘(i) Notwithstanding any other provision of this sec22 tion, a risk retention group may not participate in an in23 surance insolvency guaranty association that includes par24 ticipants other than risk retention groups.’’. 


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1 SEC. 7. FINANCIAL STATEMENTS. 

2 Section 3 of the Liability Risk Retention Act of 1986 

3 (15 U.S.C. 3902) is further amended in subsection 

4 (d)(3)— 

5 (1) by redesignating subparagraphs (A) and 

6 (B) as clauses (i) and (ii), respectively, and moving 

7 the margins two ems to the right; 

8 (2) by striking ‘‘which statement shall be cer9 tified’’ and inserting ‘‘which statement shall— 

10 ‘‘(A) be certified’’; 

11 (3) in subparagraph (A)(2) (as designated by 

12 paragraphs (1) and (2)), by striking the period and 

13 inserting a semicolon; and 

14 (4) by adding at the end the following new sub15 paragraphs: 

16 ‘‘(B) be filed not later than the earlier 

17 of— 

18 ‘‘(i) June 1, for the preceding cal19 endar year; and 

20 ‘‘(ii) such time as the State in which 

21 the risk retention group is chartered re22 quires; and 

23 ‘‘(C) if not prepared in conformity with 

24 statutory accounting principles, include appro25 priate notes for conversion of such statement to 

26 statutory accounting principles.’’. 


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1 SEC. 8. DISCLOSURE REQUIREMENTS. 

2 Section 3 of the Liability Risk Retention Act of 1986 

3 (15 U.S.C. 3902) is further amended— 

4 (1) in subsection (a)(1)— 

5 (A) in subparagraph (G), by striking ‘‘ju6 risdiction;’’ and inserting ‘‘jurisdiction; and’’; 

7 (B) in subparagraph (H), by striking ‘‘im8 paired; and’’ and inserting ‘‘impaired.’’; and 

9 (C) by striking subparagraph (I); and 

10 (2) by adding at the end the following new sub11 section: 

12 ‘‘(j) Each risk retention group shall provide to each 

13 member of such group, on the front page and the declara14 tion page of each insurance policy issued by such group, 

15 in bold 12-point or larger type, the following notice: ‘This 

16 policy is issued by your risk retention group of which you 

17 are a part owner. Your risk retention group is primarily 

18 regulated under the laws of llll and may not be sub19 ject to all of the insurance laws and consumer protections 

20 of your State. If your risk retention group fails, it may 

21 not be protected by a State insurance insolvency guaranty 

22 fund.’. The risk retention group shall insert the name of 

23 the State in which the risk retention group is chartered 

24 or licensed in place of the blank space.’’. 


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1 SEC. 9. FIDUCIARY DUTY. 

2 Section 3 of the Liability Risk Retention Act of 1986 

3 (15 U.S.C. 3902) is further amended by adding at the 

4 end the following new subsection: 

5 ‘‘(k) The board of directors of a risk retention group 

6 shall have a fiduciary duty to operate in the best interests 

7 of the group.’’. 

8 SEC. 10. UNDERSCORING THE EXEMPTION. 

9 The Liability Risk Retention Act of 1986 (15 U.S.C. 

10 3901 et seq.) is amended— 

11 (1) in section 3 (15 U.S.C. 3902)— 

12 (A) in subsection (a), by striking ‘‘Except 

13 as provided’’ and inserting ‘‘Except as specifi14 cally provided’’; and 

15 (B) in subsection (f)(1)— 

16 (i) by inserting ‘‘or purchasing group’’ 

17 after ‘‘risk retention group’’; and 

18 (ii) by inserting before the period ‘‘, 

19 except that a State may not issue a cease20 and-desist order to any risk retention 

21 group or purchasing group not chartered 

22 or licensed in such State, or otherwise at23 tempt to regulate such group directly or 

24 indirectly, except as specifically permitted 

25 under this Act.’’; and 


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1 (2) in section 4(a) (15 U.S.C. 3903(a)), by 

2 striking ‘‘Except as provided’’ and inserting ‘‘Except 

3 as specifically provided’’. 

4 SEC. 11. TECHNICAL CORRECTION AND AMENDMENT TO 

5 SHORT TITLE. 

6 (a) TECHNICAL CORRECTION.—Section 3(a)(1) of 

7 the Liability Risk Retention Act of 1986 (15 U.S.C. 

8 3902(a)(1)) is amended by striking ‘‘many’’and inserting 

9 ‘‘any’’. 

10 (b) SHORT TITLE.—Section 1 of the Liability Risk 

11 Retention Act of 1986 (15 U.S.C. 3901 note) is amended 

12 by striking ‘‘Liability Risk Retention Act’’ and inserting 

13 ‘‘Risk Retention Act’’. 

14 SEC. 12. DELAYED EFFECTIVE DATE. 

15 (a) IN GENERAL.—Subject to subsection (b), this Act 

16 and the amendments made by this Act shall take effect 

17 on the date of the enactment of this Act. 

18 (b) EXCEPTION.—Notwithstanding subsection (a), 

19 sections 3 (except clauses (iii) through (v) of paragraph 

20 (1)(A) of section 3), 5, 7, 8, and 9 shall take effect on 

21 the date that is 18 months after the date of the enactment 

22 of this Act. 

Æ 


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