15 U.S.C. § 3901: Definitions

“insurance” means primary insurance, excess insurance, reinsurance, surplus lines insurance, and any other arrangement for shifting and distributing risk which is determined to be insurance under applicable State or Federal law; any business (whether profit or nonprofit), trade, product, services (including professional services), premises, or operations, or any activity of any State or local government, or any agency or political subdivision thereof; and does not include personal risk liability and an employer’s liability with respect to its employees other than legal liability under the Federal Employers’ Liability Act ( 45 U.S.C. 51 et seq.); “personal risk liability” means liability for damages because of injury to any person, damage to property, or other loss or damage resulting from any personal, familial, or household responsibilities or activities, rather than from responsibilities or activities referred to in paragraphs (2)(A) and (2)(B); whose primary activity consists of assuming, and spreading all, or any portion, of the liability exposure of its group members; which is organized for the primary purpose of conducting the activity described under subparagraph (A); is chartered or licensed as a liability insurance company under the laws of a State and authorized to engage in the business of insurance under the laws of such State; or before January 1, 1985 , was chartered or licensed and authorized to engage in the business of insurance under the laws of Bermuda or the Cayman Islands and, before such date, had certified to the insurance commissioner of at least one State that it satisfied the capitalization requirements of such State, except that any such group shall be considered to be a risk retention group only if it has been engaged in business continuously since such date and only for the purpose of continuing to provide insurance to cover product liability or completed operations liability (as such terms were defined in this section before October 27, 1986 ); which does not exclude any person from membership in the group solely to provide for members of such a group a competitive advantage over such a person; has as its owners only persons who comprise the membership of the risk retention group and who are provided insurance by such group; or its members only persons who comprise the membership of the risk retention group; and its owners only persons who comprise the membership of the risk retention group and who are provided insurance by such group; whose members are engaged in businesses or activities similar or related with respect to the liability to which such members are exposed by virtue of any related, similar, or common business, trade, product, services, premises, or operations; liability insurance for assuming and spreading all or any portion of the similar or related liability exposure of its group members; and reinsurance with respect to the similar or related liability exposure of any other risk retention group (or any member of such other group) which is engaged in businesses or activities so that such group (or member) meets the requirement described in subparagraph (F) for membership in the risk retention group which provides such reinsurance; and the name of which includes the phrase “Risk Retention Group”. 1 1 So in original. The period probably should be a semicolon. has as one of its purposes the purchase of liability insurance on a group basis; purchases such insurance only for its group members and only to cover their similar or related liability exposure, as described in subparagraph (C); is composed of members whose businesses or activities are similar or related with respect to the liability to which members are exposed by virtue of any related, similar, or common business, trade, product, services, premises, or operations; and is domiciled in any State; “State” means any State of the United States or the District of Columbia; and to meet obligations to policyholders with respect to known claims and reasonably anticipated claims; or to pay other obligations in the normal course of business. Nothing in this chapter shall be construed to affect either the tort law or the law governing the interpretation of insurance contracts of any State, and the definitions of liability, personal risk liability, and insurance under any State law shall not be applied for the purposes of this chapter, including recognition or qualification of risk retention groups or purchasing groups. Subject to subsection (b), this Act [see Short Title of 1986 Amendment note below] shall take effect on the date of its enactment [ Oct. 27, 1986 ]. was defined in the Product Liability Risk Retention Act of 1981 [ Pub. L. 97–45 , which enacted this chapter] before the date of the enactment of this Act [ Oct. 27, 1986 ]; and was offered before such date of enactment by any risk retention group which has been chartered and operating for not less than 3 years before such date of enactment. Nothing in this Act shall be construed, interpreted or applied to diminish the obligations of any person to establish or maintain evidence of financial responsibility or otherwise comply with any of the requirements of Federal environmental laws, including but not limited to the Comprehensive Environmental Response, Compensation and Liability Act of 1980 [ 42 U.S.C. 9601 et seq.] and the Solid Waste Disposal Act [ 42 U.S.C. 6901 et seq.].” Not later than September 1, 1987 , and not later than September 1, 1989 , the Secretary of Commerce shall submit reports to the Congress concerning implementation of this Act [see Short Title of 1986 Amendment note above]. the Secretary’s consultation with State insurance commissioners, risk retention groups, purchasing groups, and other interested parties; and the Secretary’s analysis of other information available to the Secretary. the contribution of this Act [see Short Title of 1986 Amendment note above] toward resolution of problems relating to the unavailability and unaffordability of liability insurance; the extent to which the structure of regulation and preemption established by this Act is satisfactory; the extent to which, in the implementation of this Act, the public is protected from unsound financial practices and other commercial abuses involving risk retention groups and purchasing groups; the causes of any financial difficulties of risk retention groups and purchasing groups; the extent to which risk retention groups and purchasing groups have been discriminated against under State laws, practices, and procedures contrary to the provisions and underlying policy of this Act and the Product Liability Risk Retention Act (as amended by this Act) [ Pub. L. 97–45 , which enacted this chapter]; and such other comments and conclusions as the Secretary deems relevant to assessment of the implementation of this Act.”