---
kind: "section"
citation: "42 U.S.C. § 9673"
title: "42"
title_heading: "The Public Health and Welfare"
number: "9673"
heading: "Risk retention groups"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/9673"
units:
  - "Chapter 103 — Comprehensive Environmental Response, Compensation, and Liability"
  - "Subchapter IV — Pollution Insurance"
---

# §9673. Risk retention groups

- (a) **Exemption—** Except as provided in this section, a [risk retention group](/usc/42/9671.md?p=3) shall be exempt from the following:
  - (1) A [State](/usc/42/9601.md?p=27) law, rule, or order which makes unlawful, or regulates, directly or indirectly, the operation of a [risk retention group](/usc/42/9671.md?p=3).
  - (2) A [State](/usc/42/9601.md?p=27) law, rule, or order which requires or permits a [risk retention group](/usc/42/9671.md?p=3) to participate in any [insurance](/usc/42/9671.md?p=1) insolvency guaranty association to which an insurer licensed in the [State](/usc/42/9601.md?p=27) is required to belong.
  - (3) A [State](/usc/42/9601.md?p=27) law, rule, or order which requires any [insurance](/usc/42/9671.md?p=1) policy issued to a [risk retention group](/usc/42/9671.md?p=3) or any member of the group to be countersigned by an [insurance](/usc/42/9671.md?p=1) agent or broker residing in the [State](/usc/42/9601.md?p=27).
  - (4) A [State](/usc/42/9601.md?p=27) law, rule, or order which otherwise discriminates against a [risk retention group](/usc/42/9671.md?p=3) or any of its members.
- (b) **Exceptions—**
  - (1) **State laws generally applicable—** Nothing in [subsection (a)](#a) shall be construed to affect the applicability of [State](/usc/42/9601.md?p=27) laws generally applicable to [persons](/usc/42/9601.md?p=21) or [corporations](/usc/42/2297h.md?p=2). The [State](/usc/42/9601.md?p=27) in which a [risk retention group](/usc/42/9671.md?p=3) is chartered may regulate the formation and operation of the group.
  - (2) **State regulations not subject to exemption—** [Subsection (a)](#a) shall not apply to any [State](/usc/42/9601.md?p=27) law which requires a [risk retention group](/usc/42/9671.md?p=3) to do any of the following:
    - (A) Comply with the unfair [claim](/usc/42/9601.md?p=4) settlement [practices](/usc/42/17061.md?p=19) law of the [State](/usc/42/9601.md?p=27).
    - (B) Pay, on a nondiscriminatory basis, applicable premium and other taxes which are levied on admitted insurers and surplus line insurers, brokers, or policyholders under the laws of the [State](/usc/42/9601.md?p=27).
    - (C) Participate, on a nondiscriminatory basis, in any mechanism established or authorized under the law of the [State](/usc/42/9601.md?p=27) for the equitable apportionment among insurers of [pollution liability](/usc/42/9671.md?p=2) [insurance](/usc/42/9671.md?p=1) losses and expenses incurred on policies written through such mechanism.
    - (D) Submit to the appropriate authority reports and other information required of licensed insurers under the laws of a [State](/usc/42/9601.md?p=27) relating solely to [pollution liability](/usc/42/9671.md?p=2) [insurance](/usc/42/9671.md?p=1) losses and expenses.
    - (E) Register with and designate the [State](/usc/42/9601.md?p=27) [insurance](/usc/42/9671.md?p=1) commissioner as its agent solely for the purpose of receiving service of legal documents or process.
    - (F) Furnish, upon request, such commissioner a copy of any financial report submitted by the [risk retention group](/usc/42/9671.md?p=3) to the commissioner of the chartering or licensing jurisdiction.
    - (G) Submit to an examination by the [State](/usc/42/9601.md?p=27) [insurance](/usc/42/9671.md?p=1) commissioner in any [State](/usc/42/9601.md?p=27) in which the group is doing business to determine the group’s financial condition, if—
      - (i) the commissioner has reason to believe the [risk retention group](/usc/42/9671.md?p=3) is in a financially impaired condition; and
      - (ii) the commissioner of the jurisdiction in which the group is chartered has not begun or has refused to initiate an examination of the group.
    - (H) Comply with a lawful order issued in a delinquency proceeding commenced by the [State](/usc/42/9601.md?p=27) [insurance](/usc/42/9671.md?p=1) 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 (G)](#b-2-G).
- (c) **Application of exemptions—** The exemptions specified in [subsection (a)](#a) apply to—
  - (1) [pollution liability](/usc/42/9671.md?p=2) [insurance](/usc/42/9671.md?p=1) coverage provided by a [risk retention group](/usc/42/9671.md?p=3) for—
    - (A) such group; or
    - (B) any [person](/usc/42/9601.md?p=21) who is a member of such group;
  - (2) the sale of [pollution liability](/usc/42/9671.md?p=2) [insurance](/usc/42/9671.md?p=1) coverage for a [risk retention group](/usc/42/9671.md?p=3); and
  - (3) the provision of [insurance](/usc/42/9671.md?p=1) related services or management services for a [risk retention group](/usc/42/9671.md?p=3) or any member of such a group.
- (d) **Agents or brokers—** A [State](/usc/42/9601.md?p=27) may require that a [person](/usc/42/9601.md?p=21) acting, or offering to act, as an agent or broker for a [risk retention group](/usc/42/9671.md?p=3) obtain a license from that [State](/usc/42/9601.md?p=27), except that a [State](/usc/42/9601.md?p=27) may not impose any qualification or requirement which discriminates against a nonresident agent or broker.

## Source credit

(Pub. L. 96–510, title IV, § 403, as added Pub. L. 99–499, title II, § 210(a), formerly § 210, Oct. 17, 1986, 100 Stat. 1717; renumbered § 210(a), Pub. L. 99–563, § 11(c)(1), Oct. 27, 1986, 100 Stat. 3177.)