GAO Report On RRGs Seriously Flawed

Insurance Reinsurance Managed Healthcare Review - Spring 2012

On December 8, 2011, the U.S. Government Accountability Office ("GAO") issued a report to Congress entitled "Clarifications Could Facilitate States' Implementation of the Liability Risk Retention Act" ("GAO Report"). The GAO had been charged by Congress with examining: (1) the regulatory health of the RRG industry and; (2) the extent to which non-domiciliary states were exceeding their authority under federal law. The report concluded that: (1) the industry was healthy from a regulatory and financial perspective and; (2) Congress should "clarify" the registration requirement, fee and coverage provisions of the Liability Risk Retention Act, 15 U.S.C. § 3901 et seq. ("LRRA").