---
kind: "section"
citation: "15 U.S.C. § 3902"
title: "15"
title_heading: "Commerce and Trade"
number: "3902"
heading: "Risk retention groups"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/3902"
units:
  - "Chapter 65 — Liability Risk Retention"
---

# §3902. Risk retention groups

- (a) **Exemptions from State laws, rules, regulations, or orders—** Except as provided in this section, a [risk retention group](/usc/15/3901.md?p=a-4) is exempt from any [State](/usc/15/3901.md?p=a-6) law, rule, regulation, or order to the extent that such law, rule, regulation, or order would—
  - (1) make unlawful, or regulate, directly or indirectly, the operation of a [risk retention group](/usc/15/3901.md?p=a-4) except that the jurisdiction in which it is chartered may regulate the formation and operation of such a group and any [State](/usc/15/3901.md?p=a-6) may require such a group to—
    - (A) comply with the unfair claim settlement practices law of the [State](/usc/15/3901.md?p=a-6);
    - (B) pay, on a nondiscriminatory basis, applicable premium and other taxes which are levied on admitted insurers and surplus lines insurers, brokers, or policyholders under the laws of the [State](/usc/15/3901.md?p=a-6);
    - (C) participate, on a nondiscriminatory basis, in any mechanism established or authorized under the law of the [State](/usc/15/3901.md?p=a-6) for the equitable apportionment among insurers of liability [insurance](/usc/15/3901.md?p=a-1) losses and expenses incurred on policies written through such mechanism;
    - (D) register with and designate the [State](/usc/15/3901.md?p=a-6) [insurance](/usc/15/3901.md?p=a-1) commissioner as its agent solely for the purpose of receiving service of legal documents or process;
    - (E) submit to an examination by the [State](/usc/15/3901.md?p=a-6) [insurance](/usc/15/3901.md?p=a-1) commissioners in any [State](/usc/15/3901.md?p=a-6) in which the group is doing business to determine the group’s financial condition, if—
      - (i) the commissioner of the jurisdiction in which the group is chartered has not begun or has refused to initiate an examination of the group; and
      - (ii) any such examination shall be coordinated to avoid unjustified duplication and unjustified repetition;
    - (F) comply with a lawful order issued—
      - (i) in a delinquency proceeding commenced by the [State](/usc/15/3901.md?p=a-6) [insurance](/usc/15/3901.md?p=a-1) commissioner if there has been a finding of financial impairment under [subparagraph (E)](#a-1-E); or
      - (ii) in a voluntary dissolution proceeding;
    - (G) comply with any [State](/usc/15/3901.md?p=a-6) law regarding deceptive, false, or fraudulent acts or practices, except that if the [State](/usc/15/3901.md?p=a-6) seeks an injunction regarding the conduct described in this subparagraph, such injunction must be obtained from a court of competent jurisdiction;
    - (H) comply with an injunction issued by a court of competent jurisdiction, upon a petition by the [State](/usc/15/3901.md?p=a-6) [insurance](/usc/15/3901.md?p=a-1) commissioner alleging that the group is in [hazardous financial condition](/usc/15/3901.md?p=a-7) or is financially impaired; and
    - (I) provide the following notice, in 10-point type, in any [insurance](/usc/15/3901.md?p=a-1) policy issued by such group:

      “notice

  “This policy is issued by your [risk retention group](/usc/15/3901.md?p=a-4). Your [risk retention group](/usc/15/3901.md?p=a-4) may not be subject to all of the [insurance](/usc/15/3901.md?p=a-1) laws and regulations of your [State](/usc/15/3901.md?p=a-6). [State](/usc/15/3901.md?p=a-6) [insurance](/usc/15/3901.md?p=a-1) insolvency guaranty funds are not available for your [risk retention group](/usc/15/3901.md?p=a-4).”

  - (2) require or permit a [risk retention group](/usc/15/3901.md?p=a-4) to participate in any [insurance](/usc/15/3901.md?p=a-1) insolvency guaranty association to which an insurer licensed in the [State](/usc/15/3901.md?p=a-6) is required to belong;
  - (3) require any [insurance](/usc/15/3901.md?p=a-1) policy issued to a [risk retention group](/usc/15/3901.md?p=a-4) or any member of the group to be countersigned by an [insurance](/usc/15/3901.md?p=a-1) agent or broker residing in that [State](/usc/15/3901.md?p=a-6); or
  - (4) otherwise, discriminate against a [risk retention group](/usc/15/3901.md?p=a-4) or any of its members, except that nothing in this section shall be construed to affect the applicability of [State](/usc/15/3901.md?p=a-6) laws generally applicable to [persons](/usc/15/7a.md?p=6) or corporations.
- (b) **Scope of exemptions—** The exemptions specified in [subsection (a)](#a) apply to laws governing the [insurance](/usc/15/3901.md?p=a-1) business pertaining to—
  - (1) liability [insurance](/usc/15/3901.md?p=a-1) coverage provided by a [risk retention group](/usc/15/3901.md?p=a-4) for—
    - (A) such group; or
    - (B) any [person](/usc/15/7a.md?p=6) who is a member of such group;
  - (2) the sale of liability [insurance](/usc/15/3901.md?p=a-1) coverage for a [risk retention group](/usc/15/3901.md?p=a-4); and
  - (3) the provision of—
    - (A) [insurance](/usc/15/3901.md?p=a-1) related services;
    - (B) management, operations, and investment activities; or
    - (C) loss control and claims [administration](/usc/15/636e.md?p=1) (including loss control and claims [administration](/usc/15/636e.md?p=1) services for uninsured risks retained by any member of such group);

    for a [risk retention group](/usc/15/3901.md?p=a-4) or any member of such group with respect to liability for which the group provides [insurance](/usc/15/3901.md?p=a-1).

- (c) **Licensing of agents or brokers for risk retention groups—** A [State](/usc/15/3901.md?p=a-6) may require that a [person](/usc/15/7a.md?p=6) acting, or offering to act, as an agent or broker for a [risk retention group](/usc/15/3901.md?p=a-4) obtain a license from that [State](/usc/15/3901.md?p=a-6), except that a [State](/usc/15/3901.md?p=a-6) may not impose any qualification or requirement which discriminates against a nonresident agent or broker.
- (d) **Documents for submission to State insurance commissioners—** Each [risk retention group](/usc/15/3901.md?p=a-4) shall submit—
  - (1) to the [insurance](/usc/15/3901.md?p=a-1) commissioner of the [State](/usc/15/3901.md?p=a-6) in which it is chartered—
    - (A) before it may offer [insurance](/usc/15/3901.md?p=a-1) in any [State](/usc/15/3901.md?p=a-6), a plan of operation or a feasibility study which includes the coverages, deductibles, coverage limits, rates, and rating classification systems for each line of [insurance](/usc/15/3901.md?p=a-1) the group intends to offer; and
    - (B) revisions of such plan or study if the group intends to offer any additional lines of liability [insurance](/usc/15/3901.md?p=a-1);
  - (2) to the [insurance](/usc/15/3901.md?p=a-1) commissioner of each [State](/usc/15/3901.md?p=a-6) in which it intends to do business, before it may offer [insurance](/usc/15/3901.md?p=a-1) in such [State](/usc/15/3901.md?p=a-6)—
    - (A) a copy of such plan or study (which shall include the name of the [State](/usc/15/3901.md?p=a-6) in which it is chartered and its principal place of business); and
    - (B) a copy of any revisions to such plan or study, as provided in [paragraph (1)(B)](#d-1-B) (which shall include any change in the designation of the [State](/usc/15/3901.md?p=a-6) in which it is chartered); and
  - (3) to the [insurance](/usc/15/3901.md?p=a-1) commissioner of each [State](/usc/15/3901.md?p=a-6) in which it is doing business, a copy of the group’s annual financial statement submitted to the [State](/usc/15/3901.md?p=a-6) in which the group is chartered as an [insurance](/usc/15/3901.md?p=a-1) company, which statement shall be certified by an independent public accountant and contain a statement of opinion on loss and loss adjustment expense reserves made by—
    - (A) a member of the American Academy of Actuaries, or
    - (B) a qualified loss reserve specialist.
- (e) **Power of courts to enjoin conduct—** Nothing in this section shall be construed to affect the authority of any Federal or [State](/usc/15/3901.md?p=a-6) court to enjoin—
  - (1) the solicitation or sale of [insurance](/usc/15/3901.md?p=a-1) by a [risk retention group](/usc/15/3901.md?p=a-4) to any [person](/usc/15/7a.md?p=6) who is not eligible for membership in such group; or
  - (2) the solicitation or sale of [insurance](/usc/15/3901.md?p=a-1) by, or operation of, a [risk retention group](/usc/15/3901.md?p=a-4) that is in [hazardous financial condition](/usc/15/3901.md?p=a-7) or is financially impaired.
- (f) **State powers to enforce State laws—**
  - (1) Subject to the provisions of [subsection (a)(1)(G)](#a-1-G) (relating to injunctions) and [paragraph (2)](#f-2), nothing in this chapter shall be construed to affect the authority of any [State](/usc/15/3901.md?p=a-6) to make use of any of its powers to enforce the laws of such [State](/usc/15/3901.md?p=a-6) with respect to which a [risk retention group](/usc/15/3901.md?p=a-4) is not exempt under this chapter.
  - (2) If a [State](/usc/15/3901.md?p=a-6) seeks an injunction regarding the conduct described in paragraphs [(1)](#e-1) and [(2)](#e-2) of subsection (e), such injunction must be obtained from a Federal or [State](/usc/15/3901.md?p=a-6) court of competent jurisdiction.
- (g) **States’ authority to sue—** Nothing in this chapter shall affect the authority of any [State](/usc/15/3901.md?p=a-6) to bring an action in any Federal or [State](/usc/15/3901.md?p=a-6) court.
- (h) **State authority to regulate or prohibit ownership interests in risk retention groups—** Nothing in this chapter shall be construed to affect the authority of any [State](/usc/15/3901.md?p=a-6) to regulate or prohibit the ownership interest in a [risk retention group](/usc/15/3901.md?p=a-4) by an [insurance](/usc/15/3901.md?p=a-1) company in that [State](/usc/15/3901.md?p=a-6), other than in the case of ownership interest in a [risk retention group](/usc/15/3901.md?p=a-4) whose members are [insurance](/usc/15/3901.md?p=a-1) companies.

## Source credit

(Pub. L. 97–45, § 3, Sept. 25, 1981, 95 Stat. 950; Pub. L. 99–563, §§ 5, 7, 8(a), 12(c), Oct. 27, 1986, 100 Stat. 3172, 3175, 3178.)

## Notes

### Editorial Notes

### Amendments

1986—Subsec. (a)(1)(C). Pub. L. 99–563, § 12(c), struck out “product liability or completed operations” before “liability insurance losses”.

Subsec. (a)(1)(D). Pub. L. 99–563, § 5(b)(1), redesignated subpar. (E) as (D), substituted a semicolon for “, and, upon request, furnish such commissioner a copy of any financial report submitted by the risk retention group to the commissioners of the chartering or licensing jurisdiction;”, and struck out former subpar. (D) which read as follows: “submit to the appropriate authority reports and other information required of licensed insurers under the laws of a State relating solely to product liability or completed operations liability insurance losses and expenses;”.

Subsec. (a)(1)(E). Pub. L. 99–563, § 5(b)(1)(A), (c), redesignated subpar. (F) as (E), further redesignated cl. (ii) as (i), added cl. (ii), and struck out former cl. (i) which read as follows: “the commissioner has reason to believe the risk retention group is in a financially impaired condition; and”. Former subpar. (E) redesignated (D).

Subsec. (a)(1)(F). Pub. L. 99–563, § 5(b)(1)(A), (d), redesignated subpar. (G) as (F) and amended it generally. Prior to amendment, subpar. (F) read as follows: “comply with a lawful order issued in a delinquency proceeding commenced by the State insurance commissioner if the commissioner of the jurisdiction in which the group is chartered has failed to initiate such a proceeding after notice of a finding of financial impairment under subparagraph (F) of this paragraph;”. Former subpar. (F) redesignated (E).

Subsec. (a)(1)(G) to (I). Pub. L. 99–563, § 5(b)(1)(A), (e), added subpars. (G) to (I). Former subpar. (G) redesignated (F).

Subsec. (b). Pub. L. 99–563, § 5(a), amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “The exemptions specified in subsection (a) of this section apply to—

“(1) product liability or completed operations liability insurance coverage provided by a risk retention group for—

“(A) such group; or

“(B) any person who is a member of such group;

“(2) the sale of product liability or completed operations liability insurance coverage for a risk retention group; and

“(3) the provision of insurance related services or management services for a risk retention group or any member of such group.”

Subsecs. (d) to (h). Pub. L. 99–563, §§ 5(b)(2), 7, 8(a), added subsecs. (d) to (h).

### Statutory Notes and Related Subsidiaries

### Special Rule Regarding Feasibility Study

The provisions of subsec. (d) of this section, relating to the submission of a feasibility study, not applicable with respect to any line or classification of liability insurance which was defined in this chapter before Oct. 27, 1986, and was offered before such date by any risk retention group chartered and operating for not less than 3 years before such date, see section 11(b) of Pub. L. 99–563, set out as an Effective Date of 1986 Amendment; Applicability note under section 3901 of this title.