Congress authorized the use of Risk Retention Groups (RRGs) in the 1980s for the narrow purpose of increasing the supply of commercial liability insurance in response to a specific economic crisis and did not intend for RRGs to be used broadly to insure multiple types of risks. Since then some have advocated for expanding the types of coverages that RRGs can offer beyond commercial liability insurance. Allowing such an expansion would undermine the state regulation of insurance, distort insurance markets by giving certain companies statutory competitive advantages, and put consumers at risk. As such, the Big “I" opposes legislative proposals that would unduly preempt state insurance law and expand the use of RRGs.
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