28 April 2023Analysis

Florida risk retention bill close to final approval

Florida Bill 516, which has been criticised by the National Risk Retention Association (NRRA), is continuing to progress in the Florida State Senate.

The bill aims to revise the definition of the term “motor vehicle liability policy” to include certain policies issued by risk retention groups and define the term “risk retention group”.

The NRRA said that if passed, Florida Bill 516 will have a ‘devastating impact’ on not only trucking and transportation risk retention groups registered in Florida, but actually every RRG writing commercial liability, including auto. This could also arguably impact 96% of the RRGs registered in Florida and hundreds, if not thousands of RRG owner-member-insureds could lose their coverage.

The Bill’s passing may also open the door to other significant potential threats to risk retention groups in other states and for other types of risk retention group entities.

The Senate bill has now been paired with the identical House Bill CS/HB 57, which was approved by an 84-30 vote in the Florida House on Wednesday April 26.

The Bills might go to the desk of Florida Governer Ron DeSantis for final approval as soon as the week of May 1, 2023, depending on any last-minute developments.