Proposed NRRA Bill Passes Florida Legislature

As reported on in 2023, bills known as H57 and SB 516 posed significant threats to risk retention group (RRG) operations in Florida. The bills were effectively countered, marking a significant victory for the National Risk Retention Association (NRRA) and the RRG community.

According to the NRRA, SB 516 aimed to impose stringent requirements on RRGs operating in Florida. If passed, the bill would have required that any RRG writing the coverage in the state possess at least an A.M. Best "A" rating. In addition, such RRGs would be required to have a minimum Best financial size category of "VIII," meaning $100 million to $250 million in capital surplus, in order to conduct business in the state. The NRRA mobilized to oppose this bill, highlighting its discriminatory nature and potential to disrupt RRG operations.

Despite passing through several committees, including the Senate Banking & Insurance Committee, SB 516 failed to garner sufficient support and ultimately died. The NRRA's advocacy efforts played a crucial role in preventing the bill from progressing.

In addition to legislative victory, the NRRA successfully influenced regulatory decisions in the state. Insurance Commissioner Michael Yaworsky agreed to remove Florida's infamous RRG "pop-up" from its website, addressing a longstanding concern raised by NRRA regarding discriminatory practices against RRGs. The "pop-up," according to the NRRA, appeared every time someone researched any risk retention group through the Florida Office of Insurance Regulation (OIR).

Proposed NRRA Bill Passes Florida Legislature

Most recently, the NRRA has made strides in advancing alternative legislative proposals aimed at protecting RRGs in the state. One such proposal, containing language drafted by the NRRA, has passed both houses of the Florida legislature and awaits Governor Ron DeSantis' signature. Read the bill here.

NRRA said it submitted two alternative drafts of proposed bill language addressing two Florida Statutes: section 324.021, defining financial responsibility in the state, and section 627.944, defining foreign risk retention groups.

Looking Ahead

Looking ahead, the NRRA said it remains vigilant against any potential threats to RRG operations in Florida. Tim Sullivan, NRRA chair, said, "With more support to our campaign from all RRGs and other industry leadership, we are hopeful to have yet another bill to present to the Florida legislature next year to continue with our initiatives."

The NRRA said it plans to continue to help RRGs in the Sunshine State. And the organization said it believes that in many states, misinformation about RRGs abounds.