RRG task force pushes back on non domicile state registration attempts
“Risk retention groups (RRGs) have had enough” of inconsistent treatment from states where they are not domiciled, according to Sandra Bigglestone, director of captive insurance at the State of Vermont department for financial regulation.
RRGs have expressed concerns about being pushed to register and pay fees in jurisdictions in which they are not domiciled. Legally they are only required to register in one state – the one in which they are domiciled – under the Liability Risk Retention Act.
Vermont's Michael Pieciak chaired the National Association of Insurance Commissioner's (NAIC) RRG task force at its meeting in New York on August 3, with around 40 percent of the roughly 220 RRGs active in the US domiciled in Vermont.
Bigglestone told an audience at the VCIA conference the RRG task force is looking to resolve the situation by updating the registration forms RRGs are required to complete in their state of domicile. This should make it more user friendly, and could perhaps help provide other states with more of the information that need, mitigating their desire to pursue RRGs for additional registration, she said.
The task force is also developing FAQ page to educate state regulators on the registration process for RRGs.
The task force is currently consulting on its plans and is is due to meet again in September. The VCIA has expressed its support of the task force's plans.