The National Risk Retention Association applauded the recent decision of the Oklahoma Insurance Department to not enforce its annual anti-fraud fee against risk retention groups. For several years, Oklahoma took the position that RRGs should pay the fee, and many have done so under protest.
The Liability Risk Retention Act, a federal statute, allows states to assess “premium and other taxes” assessed on a non-discriminatory basis on RRGs, but does not permit the assessment of fees. Until just a few days ago, Oklahoma took the position it had the authority to assess these fees. NRRA and numerous RRGs registered their opposing interpretation of the law in extensive correspondence.
“We are appreciative that Oklahoma changed its position on the assessment of these fees”, said Rebecca Smart, Chair of the NRRA Board. “This is a big step towards clarifying the issue of the limits of non-domiciliary state authority.”
NRRA is the association representing the risk retention group, purchasing group, and alternative risk industries. There are over 220 RRGs currently operating in the United States providing approximately two percent of all U.S. commercial liability insurance.
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