- Georgia Court Rules in Favor of RRG and LRRA
- NRRA Instrumental in the Latest Decision Backing the LRRA
A recent decision by the Georgia Supreme Court in favor of a risk retention group (RRG) has prevented the state’s insurance authorities from circumventing federal regulations. The Court unanimously ruled that the Liability Risk Retention Act (LRRA) regulates RRGs, even when the RRG is domiciled in another state.
“This has been an ongoing debate prompted by some states trying to impose their own insurance regulations on foreign RRGs when the courts have ruled time and again that the LRRA governs them,” says JLTIM captive practice leader Anne Marie Towle. “At JLTIM, we are pleased the Georgia court’s decision reinforced the LRRA, and we applaud the National Risk Retention Association for once again providing important legal and historical input to the court.”
The court’s opinion read, in part, “While this type of regulating [Georgia’s direct action statutes] may be permissible with respect to traditional insurance carriers, it is not allowed in the case of a foreign risk retention group by the express act of Congress in the LRRA.”
Anne Marie Towle
Tel: +1 317 922 4390
Tel: +1 802 391 3081
NOTES TO EDITORS:
About JLT Insurance Management (USA) LLC
JLTIM USA is an independent, full-service captive insurance management and captive consulting company with a multi-domicile reach. JLTIM USA is a part of Jardine Lloyd Thompson Group.
About Jardine Lloyd Thompson
Jardine Lloyd Thompson is one of the world’s leading providers of insurance, reinsurance and employee benefits related advice, brokerage and associated services. JLT’s client proposition is built upon its deep specialist knowledge, client advocacy, tailored advice and service excellence.
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