WRIN.tv speaks with Michael Schroeder, co-founder and general counsel at Allied Professionals Insurance Company, about the court battles waged and won in defense of RRG rights with respect to the Liability Risk Retention Act, and battles yet to come.

While the Liability Risk Retention Act was passed in 1986, no federal agency is responsible for oversight or regulation of the law. Primary regulatory authority for RRGs, therefore, lies within the state of domicile. That has caused its share of disagreements and court battles.Allied Professionals has partnered with the National Risk Retention Association (NRRA) to determine and execute strategies regarding challenges to State laws and their application to RRGs. Mr. Schroeder believes the “litigation phase is largely over.” The RRG industry mat still be looking at the legality of certain fees some States are charging RRGs, however.

Mr. Schroeder is confident about the future of RRGs. With $12 billion in admitted assets and a business model serving niches that traditional insurers believe are too small or too complicated. He also points to potential legislation that would allow RRGs to underwrite property coverage.

For more from the 2015 NRRA Conference, visit the WRIN.tv On Demand Library.

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