Nonprofit Property Protection Act

I 116TH CONGRESS 1ST SESSION H. R. 4523 To amend the Liability Risk Retention Act of 1986 to expand the types of commercial insurance authorized for risk retention groups serving nonprofit organizations, and for other purposes. IN THE HOUSE OF REPRESENTATIVES SEPTEMBER 26, 2019 Mr. GREEN of Texas (for himself, Mr. LAWSON of Florida, Mr. PANETTA, Ms. JACKSON LEE, Mr. MEEKS, Mr. GARCI´A of Illinois, and Mr. CLAY) intro- duced the following bill; which was referred to the Committee on Finan- cial Services A BILL To amend the Liability Risk Retention Act of 1986 to ex- pand the types of commercial insurance authorized for risk retention groups serving nonprofit organizations, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Nonprofit Property 4 Protection Act’’. 5 VerDate Sep 11 2014 04:32 Oct 02, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4523.IH H4523 kjohnson on DSK79L0C42 with BILLS 2 •HR 4523 IH SEC. 2. COMMERCIAL INSURANCE. 1 The Liability Risk Retention Act of 1986 is amend- 2 ed— 3 (1) in section 2(a) (15 U.S.C. 3901(a))— 4 (A) in paragraph (6), by striking ‘‘and’’ at 5 the end; 6 (B) in paragraph (7)(B), by striking the 7 period at the end and inserting ‘‘; and’’; and 8 (C) by adding at the end the following new 9 paragraph: 10 ‘‘(8) ‘commercial insurance’ includes all forms 11 of commercial insurance, except that such term does 12 not include health, life, or disability insurance or 13 workers compensation insurance.’’; 14 (2) in section 3(b) (15 U.S.C. 3902(b))— 15 (A) in paragraph (2), by striking ‘‘and’’ at 16 the end; 17 (B) in paragraph (3), by striking the pe- 18 riod at the end and inserting ‘‘; and’’; and 19 (C) by adding at the end the following new 20 paragraph: 21 ‘‘(4) subject to subsection (i) of this section, the 22 provision of other lines of commercial insurance by 23 a risk retention group to an organization organized 24 and operated exclusively for purposes identified 25 under section 501(c)(3) of the Internal Revenue 26 VerDate Sep 11 2014 04:32 Oct 02, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4523.IH H4523 kjohnson on DSK79L0C42 with BILLS 3 •HR 4523 IH Code of 1986 (26 U.S.C. 501(c)(3)), provided 1 that— 2 ‘‘(A) the risk retention group serves non- 3 profit organizations with tax-exempt status 4 under section 501(c)(3) of the Internal Revenue 5 Code of 1986 (26 U.S.C. 501(c)(3)); 6 ‘‘(B) the risk retention group has been 7 chartered or licensed as an insurance company 8 under the laws of a State and authorized to en- 9 gage in the business of insurance under the 10 laws of such State; 11 ‘‘(C) the risk retention group has engaged 12 in the business of insurance pursuant to the 13 charter or license and authority described in 14 subparagraph (B) for a period not less than ten 15 consecutive years; 16 ‘‘(D) the risk retention group maintains 17 capital and surplus of at least $10,000,000, as 18 calculated in accordance with accounting prin- 19 ciples generally accepted in the United States; 20 and 21 ‘‘(E) the total insured value of the risks 22 covered by the initial policy for other forms of 23 commercial insurance provided by a risk reten- 24 tion group to any one member of the risk reten- 25 VerDate Sep 11 2014 04:32 Oct 02, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4523.IH H4523 kjohnson on DSK79L0C42 with BILLS 4 •HR 4523 IH tion group does not exceed $50,000,000, pro- 1 vided further that— 2 ‘‘(i) the amount specified in this para- 3 graph shall, beginning one year after the 4 date of the enactment of the Nonprofit 5 Property Protection Act and on an annual 6 basis thereafter, be adjusted by a percent- 7 age equal to the estimated percentage in- 8 crease, if any, in the Consumer Price 9 Index, which adjustment shall be subject to 10 approval by the risk retention group’s 11 domicile state regulator; and 12 ‘‘(ii) for purposes of this paragraph, 13 any computation of total insured value 14 shall exclude liability insurance coverage 15 provided by a risk retention group to any 16 member as authorized pursuant to this 17 Act.’’; and 18 (3) in section 3 (15 U.S.C. 3902), by adding at 19 the end the following new subsection: 20 ‘‘(i) STATE AUTHORITY TO RESTRICT FORMS OF 21 COMMERCIAL INSURANCE OTHER THAN LIABILITY.— 22 ‘‘(1) REQUIREMENTS FOR RESTRICTION.—Sub- 23 ject to paragraph (2), a risk retention group may 24 not commence offering forms of commercial insur- 25 VerDate Sep 11 2014 04:32 Oct 02, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4523.IH H4523 kjohnson on DSK79L0C42 with BILLS 5 •HR 4523 IH ance other than liability in a State if the insurance 1 regulatory authority for such State makes publicly 2 available on a website of such authority the identi- 3 ties of three or more licensed admitted carriers in 4 such State that— 5 ‘‘(A) have filed forms, rates, and rules for 6 monoline property coverage written on the prop- 7 erty portion of a businessowners policy and 8 monoline automobile physical damage coverage; 9 ‘‘(B) have active in-force policies of 10 monoline property and monoline automobile 11 physical damage coverage issued to nonprofit 12 organizations in such State at the time the in- 13 formation required under this paragraph is ini- 14 tially made publicly available; and 15 ‘‘(C) the monoline property and monoline 16 automobile physical damage coverages offered 17 by each such carrier are easily accessible in 18 such State to nonprofit organizations through 19 the independent broker marketplace. 20 ‘‘(2) TREATMENT OF RISK RETENTION GROUPS 21 WITH IN-FORCE POLICIES.—Any risk retention 22 group having an active, in-force commercial insur- 23 ance policy authorized in subsection (b)(4) in a 24 State at the time that the information required 25 VerDate Sep 11 2014 04:32 Oct 02, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H4523.IH H4523 kjohnson on DSK79L0C42 with BILLS 6 •HR 4523 IH under paragraph (1) for such State is initially made 1 publicly available, shall remain authorized to con- 2 tinue to write commercial insurance pursuant to 3 subsection (b)(4). 4 ‘‘(3) DEFINITION.—For purposes of this sub- 5 section, the term ‘nonprofit organization’ means an 6 organization with tax-exempt status under section 7 501(c)(3) of the Internal Revenue Code of 1986 (26 8 U.S.C. 501(c)(3)).’’. 9 SEC. 3. CONFORMING AND CLARIFYING AMENDMENTS. 10 The Liability Risk Retention Act of 1986 is further 11 amended— 12 (1) in section 2(a)(4) (15 U.S.C. 3901(a)(4))— 13 (A) in subparagraph (C)(i), by striking ‘‘a 14 liability’’ and inserting ‘‘an’’; and 15 (B) in subparagraph (G)— 16 (i) in clause (i), by inserting ‘‘or other 17 commercial’’ after ‘‘liability’’ each place 18 such term appears; and 19 (ii) in clause (ii), by inserting ‘‘or 20 other commercial’’ after ‘‘liability’’; 21 (2) in section 3 (15 U.S.C. 3902)— 22 (A) in subsection (a)(1)(C), by inserting 23 ‘‘or other commercial’’ after ‘‘liability’’; and 24 VerDate Sep 11 2014 04:32 Oct 02, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H4523.IH H4523 kjohnson on DSK79L0C42 with BILLS 7 •HR 4523 IH (B) in subsection (d)(1)(B), by inserting 1 ‘‘or other commercial’’ after ‘‘liability’’; and 2 (3) in section 6(b) (15 U.S.C. 3905(b)), by in- 3 serting ‘‘or other forms of commercial’’ before ‘‘in- 4 surance by a risk retention group’’. 5 SEC. 4. AMENDMENT TO SHORT TITLE. 6 Section 1 of the Liability Risk Retention Act of 1986 7 (15 U.S.C. 3901 note) is amended by striking ‘‘Liability 8 Risk Retention Act of 1986’’ and inserting ‘‘Risk Reten- 9 tion Act of 1986’’. 10 Æ VerDate Sep 11 2014 04:32 Oct 02, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6301 E:\BILLS\H4523.IH H4523 kjohnson on DSK79L0C42 with BILLS