Nonprofit Property Protection Act

Bill: 114-hr-3794
Sponsor: full_name: Rep. Ross, Dennis A. [R-FL-15]
Introduced: 2015-10-21
Policy area: Finance and Financial Sector
Subjects: Insurance industry and regulation

Social work, volunteer service, charitable organizations

Tax-exempt organizations
Latest action: action_date: 2015-10-21
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2015-10-21
action_desc: Introduced in House
text: <p><b>Nonprofit Property Protection Act</b></p> <p>This bill:</p> <ul> <li>amends the Liability Risk Retention Act of 1986 to rename it the Risk Retention Act of 1986; and </li> <li>exclude from &quot;commercial insurance&quot; covered by the Act any health, life, or disability insurance or workers compensation insurance or express contractual obligations owed to a consumer as a result of a personal, family, or household transaction, where the consumer pays a separate consideration for the express contractual obligation. </li> </ul> <p>The bill expands the kinds of state laws pertaining to business insurance from which a risk retention group shall be exempt to include laws pertaining to other lines of commercial insurance offered by a risk retention group to an entity organized and operated exclusively as a federal tax-exempt nonprofit charitable or educational institution, as long as the group meets specified criteria. </p>

tv_txt: I 114th CONGRESS 1st Session H. R. 3794 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. Short title This Act may be cited as the Nonprofit Property Protection Act . 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 but does not include health, life, or disability insurance or workers compensation insurance or express contractual obligations owed to a consumer as a result of a personal, family, or household transaction, where a separate consideration is paid by the consumer for the express contractual obligation. ; and (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) 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) ) or educational institutions and education-related institutions that are nonprofit organizations or governmental entities; (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. . 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 . 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 .