October 2, 2014
DAN LABRIE ELECTED CHAIRMAN -- NATIONAL RISK RETENTION ASSOCIATION
Chicago, IL -- Dan Labrie, President and CEO of the Housing Authority Insurance Group (HAI), which serves public housing authorities across the United States, was elected Chairman of the National Risk Retention Association (NRRA) at its Board of Directors meeting here.
"Dan Labrie is a leader in our industry who has given strong support to NRRA over the years. We are especially pleased that he has agreed to serve as Chairman," said Sanford "Sandy" Elsass, who has been Chairman for the last three years.
The HAI Group is composed of 11 diverse companies that provide insurance and other services to the public and affordable housing community. HAI offers liability insurance to its members through the Housing Authority Risk Retention Group, Inc., one of the largest and most successful risk retention groups. The Company was one of the first RRGs organized after enactment of the Liability Risk Retention Act of 1986 (LRRA).
"NRRA is the public voice of risk retention and purchasing groups with a successful record of defending the industry against challenges to the authority of RRGs to operate in some states; I am confident in the future growth of this important sector of the insurance industry," Labrie said.
Some 240 risk retention groups collectively write over $2.5 billion premium.
Under the LRRA, RRGs are authorized to write liability insurance in all 50 states when licensed in a single state.
ED MEEHAN -- PIONEER OF CAPTIVE REGULATION HONORED WITH KAREN CUTTS AWARD
Chicago, IL -- Ed Meehan, pioneer of captive insurance regulation in the United States, was honored posthumously with the Karen Cutts Visionary Award, which is granted annually by the National Risk Retention Association to an individual who made an outstanding contribution to the risk retention and purchasing group industry.
Meehan set the foundation for captive regulation in the U.S. as Vermont's first Director of Captive Operations following enactment of the State's captive insurance law in 1981. Vermont went on to become the preeminent domicile licensing more than 1,000 captive insurance companies over the years. The principles Meehan established remain solidly in place: regulation free of politics, strong capital requirements, firm but flexible, rigorous oversight, and always ready to hold captives accountable.
The award was presented at NRRA's annual conference by Sanford "Sandy" Elsass, Chairman of NRRA; Len Crouse, former Deputy Commissioner of the Vermont Captive Division; and Derick White, President of Strategic Risk Solutions-Vermont and formerly the State's Director of Captive Insurance. Meehan's son Mike, a consultant with Milliman, accepted the award on behalf of his father.
NEBRASKA SUPREME COURT RULES THAT THE FEDERAL RISK RETENTION ACT PREEMPTS STATE LAW
Chicago, IL -- The Nebraska Supreme Court ruled last week that the Liability Risk Retention Act preempts a state law which prohibits arbitration provisions in insurance policies.
A chiropractor sued Allied Professionals Insurance Company, a risk retention group, claiming that an arbitration provision in the Allied policy was illegal under state law. Allied appealed the district court ruling in favor of the chiropractor. The Supreme Court overruled the district court in an unqualified opinion that the federal Liability Risk Retention Act (LRRA) preempts the state law.
“I am very pleased by this sweeping ruling in favor of the risk retention industry on the preemption of state laws regulating risk retention groups,” said Michael Schroeder, Chairman of Allied. He pointed out that the Nebraska Supreme Court decision follows recent favorable decisions in similar cases by federal circuit courts of appeal in the Second and Eleventh Circuits.
Joseph Deems, Executive Director of the National Risk Retention Association (NRRA), speaking at the Association’s annual conference in Chicago hailed the decision as an “important precedent that reinforces the preemption provisions of the LRRA in cases that involve state statutes and is one more in a series of court decisions upholding the right of risk retention groups to operate free of most regulation in all 50 states when licensed in a single state.”