Title: Nonprofit Property Protection Act
Policy area: Finance and Financial Sector

Summary:
Nonprofit Property Protection Act
This bill allows certain risk-retention groups that serve nonprofit organizations to offer additional types of commercial insurance.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6292 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 6292

 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

                             June 28, 2018

    Mr. Ross (for himself, Mr. Posey, Mr. MacArthur, and Mrs. Love) 
 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.

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

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, except that such term does not include 
        health, life, or disability insurance or workers compensation 
        insurance.'';
            (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) subject to subsection (i) of this section, 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));
                    ``(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.''; and
            (3) in section 3 (15 U.S.C. 3902), by adding at the end the 
        following new subsection:
    ``(i) State Authority To Restrict Forms of Commercial Insurance 
Other Than Liability.--
            ``(1) Requirements for restriction.--Subject to paragraph 
        (2), a risk retention group may not commence offering forms of 
        commercial insurance other than liability in a State if the 
        insurance regulatory authority for such State makes publicly 
        available on a website of such authority the identities of 
        three or more licensed admitted carriers in such State that--
                    ``(A) have filed forms, rates, and rules for 
                monoline property coverage written on the property 
                portion of a businessowners policy and monoline 
                automobile physical damage coverage;
                    ``(B) have active in-force policies of monoline 
                property and monoline automobile physical damage 
                coverage issued to nonprofit organizations in such 
                State at the time the information required under this 
                paragraph is initially made publicly available; and
                    ``(C) the monoline property and monoline automobile 
                physical damage coverages offered by each such carrier 
                are easily accessible in such State to nonprofit 
                organizations through the independent broker 
                marketplace.
            ``(2) Treatment of risk retention groups with in-force 
        policies.--Any risk retention group having an active, in-force 
        commercial insurance policy authorized in subsection (b)(4) in 
        a State at the time that the information required under 
        paragraph (1) for such State is initially made publicly 
        available, shall remain authorized to continue to write 
        commercial insurance pursuant to subsection (b)(4).
            ``(3) Definition.--For purposes of this subsection, the 
        term `nonprofit organization' means an organization with tax-
        exempt status under section 501(c)(3) of the Internal Revenue 
        Code of 1986 (26 U.S.C. 501(c)(3)).''.

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''.
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