Public Law 99–563

by striking paragraphs (1) and (3);

by redesignating paragraph (2) as paragraph (1); and

by inserting after paragraph (1), as so redesignated, the following new paragraphs:

“(2)“(2)

‘liability’—

“(A)“(A)

means legal liability for damages (including costs of defense, legal costs and fees, and other claims expenses) because of injuries to other persons, damage to their property, or other damage or loss to such other persons resulting from or arising out of—

“(i)“(i)

any business (whether profit or nonprofit), trade, product, services (including professional services), premises, or operations, or

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“(ii)“(ii)

any activity of any State or local government, or any agency or political subdivision thereof; and

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“(B)“(B)

does not include personal risk liability and an employer’s liability with respect to its employees other than legal liability under the Federal Employers’ Liability Act (45 U.S.C. 51 et seq.);

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“(3)“(3)

‘personal risk liability’ means liability for damages because of injury to any person, damage to property, or other loss or damage resulting from any personal, familial, or household responsibilities or activities, rather than from responsibilities or activities referred to in paragraphs (2)(A) and (2)(B);”.

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by striking “and” at the end of paragraph (5);

by striking the period at the end of paragraph (6) and inserting “; and”; and

by adding at the end thereof the following new paragraph:

“(7)“(7)

‘hazardous financial condition’ means that, based on its present or reasonably anticipated financial condition, a risk retention group is unlikely to be able—

“(A)“(A)

to meet obligations to policyholders with respect to known claims and reasonably anticipated claims; or

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“(B)“(B)

to pay other obligations in the normal course of business.”.

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Section 2(a)(4) (15 U.S.C. 3901(a)(4)) is amended by striking “taxable as a corporation, or as an insurance company, formed under the laws of any State, Bermuda, or the Cayman Islands”.

Subparagraph (A) of such section is amended by striking “product liability or completed operations liability risk exposure” and inserting “liability exposure”.

Subparagraph (C) of such section is amended to read as follows:

“(C)“(C)

which—

“(i)“(i)

is chartered or licensed as a liability insurance company under the laws of a State and authorized to engage in the business of insurance under the laws of such State; or

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“(ii)“(ii)

before January 1, 1985, was chartered or licensed and authorized to engage in the business of insurance under the laws of Bermuda or the Cayman Islands and, before such date, had certified to the insurance commissioner of at least one State that it satisfied the capitalization requirements of such State, except that any such group shall be considered to be a risk retention group only if it has been engaged in business continuously since such date and only for the purpose of continuing to provide insurance to cover product liability or completed operations liability (as such terms were defined in this section before the date of the enactment of the Risk Retention Act of 1986);”.

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Such section is further amended—

in subsection (a)(1)—

by adding at the end of such section the following new subsection:

“(d)“(d)

Each risk retention group shall submit—

“(1)“(1)

to the insurance commissioner of the State in which it is chartered—

“(A)“(A)

before it may offer insurance in any State, a plan of operation or a feasibility study which includes the coverages, deductibles, coverage limits, rates, and rating classification systems for each line of insurance the group intends to offer; and

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“(B)“(B)

revisions of such plan or study if the group intends to offer any additional lines of liability insurance;

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“(2)“(2)

to the insurance commissioner of each State in which it intends to do business, before it may offer insurance in such State—

“(A)“(A)

a copy of such plan or study (which shall include the name of the State in which it is chartered and its principal place of business); and

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“(B)“(B)

a copy of any revisions to such plan or study, as provided in paragraph (1)(B) (which snail include any change in the designation of the State in which it is chartered); and

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“(3)“(3)

to the insurance commissioner of each State in which it is doing business, a copy of the group’s annual financial statement submitted to the State in which the group is chartered as an insurance company, which statement shall be certified by an independent public accountant and contain a statement of opinion on loss and loss adjustment expense reserves made by— “(A) a member of the American Academy of Actuaries, or “(B) a qualified loss reserve specialist.”.

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by striking clause (i);

by redesignating clause (ii) as clause (i); and

by adding at the end the following new clause:

“(ii)“(ii)

any such examination shall be coordinated to avoid unjustified duplication and unjustified repetition;”.

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in subsection (a), by inserting “and section 6” after “section”; and

by adding at the end the following new subsections:

“(g)“(g)

Nothing in this Act shall be construed to affect the authority of any State to make use of any of its powers to enforce the laws of such State with respect to which a purchasing group is not exempt under this Act.

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“(h)“(h)

Nothing in this Act shall affect the authority of any State to bring an action in any Federal or State court.”.

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the contribution of this Act toward resolution of problems relating to the unavailability and unaffordability of liability insurance;

the extent to which the structure of regulation and preemption established by this Act is satisfactory;

the extent to which, in the implementation of this Act, the public is protected from unsound financial practices and other commercial abuses involving risk retention groups and purchasing groups;

the causes of any financial difficulties of risk retention groups and purchasing groups;

the extent to which risk retention groups and purchasing groups have been discriminated against under State laws, practices, and procedures contrary to the provisions and underlying policy of this Act and the Product Liability Risk Retention Act (as amended by this Act); and

such other comments and conclusions as the Secretary deems relevant to assessment of the implementation of this Act.

was defined in the Product Liability Risk Retention Act of 1981 before the date of the enactment of this Act; and

15 USC 3901 note.

was offered before such date of enactment by any risk retention group which has been chartered and operating for not less than 3 years before such date of enactment.

Section 210 of the Superfund Amendments and Reauthorization Act of 1986 is amended by inserting “(a)” following

Ante, p. 1716.

“Pollution Liability Insurance” and adding at the end thereof the following:

“(b)“(b)

For purposes of subsection (a) of this section, the powers and

42 USC 9671 note.

authorities of States addressed by the Risk Retention Amendments of 1986 are in addition to those of this Act.”.

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Nothing in this Act shall be construed, interpreted or

15 USC 3901 note.

applied to diminish the obligations of any person to establish or maintain evidence of financial responsibility or otherwise comply with any of the requirements of Federal environmental laws, including but not limited to the Comprehensive Environmental Response, Compensation and Liability Act of 1980 and

42 USC 9601 note.

42 USC 6901 note.

the Solid Waste Disposal Act.

in paragraph (1), by striking “product liability or completed operations liability insurance, and comprehensive general liability insurance which includes either of these coverages,” and inserting “liability insurance”; and

in paragraph (2), by striking “product liability or completed operations insurance, and comprehensive general”.