tion page of each insurance policy issued by such group, 
in bold 12-point or larger type, the following notice: ‘This 
policy is issued by your risk retention group of which you 
are a part owner. Your risk retention group is primarily 
regulated under the laws of llllll and may not 
be subject to all of the insurance laws and consumer pro-
tections of your State. If your risk retention group fails, 
it may not be protected by a State insurance insolvency 
guaranty fund.’. The risk retention group shall insert the 
name of the State in which the risk retention group is 
chartered or licensed in place of the blank space.’’. 
(3) FIDUCIARY DUTY.—In section 3 (15 U.S.C. 
3902) by adding at the end the following new sub-
section: 
‘‘(j) The board of directors of a risk retention group 
shall have a fiduciary duty to operate in the best interests 
of the group.’’. 
(4) UNDERSCORING THE EXEMPTION.—(A) in 
section 3 (15 U.S.C. 3902)— 
(i) in subsection (a) in the matter pre-
ceding paragraph (1), by striking ‘‘Except 
as provided’’ and inserting ‘‘Except as spe-
cifically provided’’; and 
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(ii) in subsection (f)(1), by inserting 
‘‘or purchasing group’’ after ‘‘risk reten-
tion group’’; and 
(B) in section 4(a) in the matter preceding 
paragraph (1) (15 U.S.C. 3903(a)), by striking ‘‘Ex-
cept as provided’’ and inserting ‘‘Except as specifi-
cally provided’’. 
SEC. 6. STUDY ON UNLAWFUL STATE REGULATION OF RISK 
RETENTION GROUPS. 
(a) STUDY.—The Comptroller General of the United 
States shall conduct a study of— 
(1) instances where nondomiciliary States at-
tempt to unlawfully regulate, directly or indirectly, 
the operation of risk retention groups through uni-
lateral ‘‘cease and desist’’ orders or other means; 
(2) costs to risk retention groups associated 
with State actions referred to in paragraph (A) 
above, including but not limited to legal fees and 
cessation of business operations; 
(3) the ability of risk retention groups to pay 
for costs associated with challenging nondomiciliary 
States that violate the Liability Risk Retention Act 
of 1986 (15 U.S.C. 3901 et seq.) by applying their 
laws in an extra-territorial manner; and 
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(4) possible legislative solutions that would rein-
force and underscore the foundation of the Liability 
Risk Retention Act of 1986, which exempts risk re-
tention groups and purchasing groups from laws of 
a State other than their chartering State, except as 
specifically provided in the Act as well as ways to re-
duce or eliminate costs if a particular risk retention 
group prevails in a State or Federal court of com-
petent jurisdiction. 
(b) REPORT.—Not later than 1 year after the date 
of the enactment of this Act, the Comptroller General shall 
submit to the Committee on Banking, Housing, and 
Urban Affairs of the Senate and the Committee on Finan-
cial Services of the House of Representatives a report con-
taining the results of the study under subsection (a) and 
any recommendations for actions that Congress should 
consider to ensure that States do not interfere with or reg-
ulate, directly or indirectly, risk retention groups or pur-
chasing groups in an extra-territorial manner precluded 
by sections 3 and section 4 of the Liability Risk Retention 
Act of 1986 (15 U.S.C. 3902 and 3903). 
(c) DEFINITIONS.—In this section, the terms ‘‘risk 
retention group’’ and ‘‘purchasing group’’ have the mean-
ing given such terms in section 2 of the Liability Risk 
Retention Act of 1986 (15 U.S.C. 3901). 
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SEC. 7. TECHNICAL CORRECTION AND AMENDMENT TO 
SHORT TITLE. 
(a) TECHNICAL CORRECTION.—Section 3(a)(1) of 
the Liability Risk Retention Act of 1986 (15 U.S.C. 
3902(a)(1)) is amended by striking ‘‘many’’ and inserting 
‘‘any’’. 
(b) 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’’ and inserting 
‘‘Risk Retention Act’’. 
SEC. 8. EFFECTIVE DATE. 
The amendments made by sections 3, 4, and 5 shall 
take effect on the date that is 18 months after the date 
of the enactment of this Act. 
Æ 
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