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NAIC Testifies at Hearing Examining the Availability of Insurance for Nonprofits

Dir. Lindley-Myers Testifies on RRGs

WASHINGTON (Jan. 29, 2020) — Chlora Lindley-Myers, Director of the Missouri Department of Commerce and Insurance testified before Congress regarding concerns with the Nonprofit Property Protection Act (HR 4523), which would expand the Liability Risk Retention Act (LRRA) to allow Risk Retention Groups (RRGs) to write commercial property coverage.  

 “The limited oversight of non-domiciliary states in the RRG regulatory framework, coupled with the lack of state-run guaranty fund protection and increased risk of insolvencies associated with RRGs, could expose nonprofit organizations and those who rely upon them to unnecessary risks," testified Lindley-Myers.

The hearing was held by the U.S. House Financial Services Subcommittee on Housing, Community Development and Insurance. Lindley-Myers testified on behalf of the NAIC, where she serves as Secretary-Treasurer.

Read Lindley-Myers full submitted testimony.

About the NAIC

As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (NAIC) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally. For more information, visit www.naic.org.

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