Business Services Industry

Risk retention groups gain ground in North Dakota.(Legislators approve a favourable bill)

Business Insurance, March, 2005 by GEISEL, JERRY

Byline: JERRY GEISEL BISMARCK, N.D.-Following a change in direction by state legislators, risk retention groups operating in North Dakota now may avoid a legal battle they have waged in other states. North Dakota lawmakers, responding to arguments raised by the risk retention group industry, are moving away from an earlier state Senate-passed bill that RRGs said discriminates against them and violates the federal law that created risk retention groups.

Instead, legislators and the state insurance department are backing a new measure-unanimously approved last week by the North Dakota House of Representatives-that would require automobile dealers and distributors selling vehicle service contracts to purchase reimbursement policies from insurance companies,...

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