The National Risk Retention Association (NRRA) is set to oppose bill S0516 which looks to place restrictions on risk retention groups (RRGs) writing commercial auto liability in Florida.
The organisation’s opposition to the aforementioned bill has been “extensive” and “vigorous”. The NRRA believes that the bill will “discriminate” against RRGs and will oppose this bill with a proposed revision to Florida’s motor vehicle law.
According to NRRA, the bill aims to impose a requirement that any such RRG must possess at least an A.M. Best “A” rating, plus minimum financial size status of “VIII” (meaning US$100 million to US$250 million in capital surplus) to conduct business in the State.
The bill — which was introduced by committee vice chair and Florida senator Nick DiCeglie — was unanimously approved by the Senate Banking & Insurance Committee at a meeting on 22 March 2023.
The bill will now be assigned to the Senate Appropriations Committee on Criminal and Civil Justice for approval.
