Florida Bill 516 to Be Shelved in Current Session

The Florida Senate has shelved Florida Senate Bill 516 (the Bill)—a Bill that would have effectively barred most Transportation risk retention groups from writing in Florida. The Bill had passed in the Florida House of Representatives.

The National Risk Retention Association (NRRA) has stated that they believe the Bill will be reintroduced in the 2024 Florida legislative session.

The Bill would have required risk retention groups writing commercial auto liability to carry an AM Best rating of “A” (Excellent) and be of an AM Best size category of VIII or above ($100 million or more in surplus). These are stringent requirements. Only one risk retention group serving the Transportation sector—National Independent Truckers Ins. Co., RRG (B++)—carries an AM Best rating and none are of a Financial Size of VIII or above.

In total, there are just 25 risk retention groups with an AM Best rating of “A” or higher that have over $100 million in surplus—around 10% of all risk retention groups.

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