The National Risk Retention Association (NRRA) is escalating its fundraising for a pushback plan to the Florida 516 Bill on motor vehicle liability policies.
The controversial bill was approved by the Florida Senate by an 84-30 vote on 26 April.
In its latest statement, the NRRA strongly argued against the bill which it claims was already “fatally flawed” before its newest amendment, SB 516.
The amendment would see risk retention groups (RRGs) needing an A.M. Best “A” rating to write any form of commercial auto liability in Florida. The amendment also requires RRGS to have a minimum of US$100M in capital surplus.
The NRRA says the proposed requirement is “unconstitutional” and “discriminatory.”
NRRA’s executive director Joe Deems has announced that the association will campaign to communicate with and educate legislators about the inherent flaws in the bill.
In addition, the NRRA will continue with its campaign to develop “favourable understanding of the issues with the governor’s office and multiple state agencies.”
The NRRA has also said: “If all else fails, and (when) the bill passes, with the current damaging language, [litigation will commence] to challenge it under the federal law.”
Additionally, Deems attended multiple hearings last week to articulate the NRRA’s opposition to the bill, including the third reading session on 26 April where the bill was passed.
Commenting further on the NRRA’s fundraising plan, Deems says: “How much money you have does not make you a safer company!”
