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Risk Retention Amendments of 1986

Public Law 99-563 · S. 2129 · 99th Congress · began in the Senate

Signed by Ronald Reagan (R) on Oct 27, 1986 · Commerce

Sponsor: Sen. Robert Kasten (R-WI)

Cosponsors (14): Sen. John Danforth,

Passage votes

  • HouseUnanimous consent
  • SenateVoice vote
Data notes

The final version of the law, as each chamber passed it. A chamber that passed it by voice vote or unanimous consent has no count. “Method not stated” means the record does not say how the chamber voted. Where the record has a member-by-member vote, the “Who voted for it” section shows who voted yea.

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Summary

The Congressional Research Service’s plain-language summary of what the law does.

(Senate agreed to House amendment with an amendment)

Risk Retention Amendments of 1986 - Amends the Product Liability Risk Retention Act of 1981 to define "liability" as legal liability for damages because of injuries to other persons, damage to their property, or other damage or loss resulting from: (1) any business, trade, product, services, premises, or operation; or (2) any activity of a State or local government. Excludes from such definition personal risk liability and employer's liability.

Excludes from such Act's coverage product liability risk retention groups formed on or after January 1, 1985, under the laws of Bermuda or the Cayman Islands. Deems such groups formed before January 1, 1985, to be risk retention groups only for the purpose of continuing to provide product liability or completed operations liability.

Adds to the definition of "risk retention group" certain requirements pertaining to the structure of such group.

Requires that members of a purchasing group have businesses or activities which are similar or related with respect to the liability to which the members are exposed by virtue of any related, similar, or common business, trade product, service, premises, or operations.

Requires that risk retention groups make certain reports to State insurance regulators. Allows the State to require the group to comply with an order issued in a delinquency proceeding if there is a finding of financial impairment.

Authorizes any State to require a group to comply with any State law regarding false or fraudulent acts or practices.

Permits any State to require a group to: (1) comply with a lawful order issued in a voluntary dissolution proceeding; (2) make reinsurance available only to organizations whose businesses are similar or related with respect to the nature of their exposure to the risk of liability; (3) comply with any court injunction issued in accordance with administrative due process upon a State insurance commission's petition alleging that the group is in a hazardous financial condition or is financially impaired; (4) submit to the State insurance commission a plan of operation or feasibility study including specified information; and (5) provide a specified cautionary notice in any insurance policy it issues.

Declares that nothing in such Act shall be construed to affect the authority of any court to enjoin: (1) the solicitation or sale of insurance by a risk retention group to persons ineligible to belong to such group; (2) false, deceptive, or fraudulent acts or practices in the solicitation or sale of such insurance; (3) the solicitation or sale of insurance by, or operation of, a risk retention group that is in a hazardous financial condition; or (4) the solicitation or sale of insurance by, or operation of, a risk retention group that has been found, or any of whose officers, organizers, or directors have been found, to have engaged in knowing and willful false, deceptive, or fraudulent conduct within the previous five years, and under circumstances that present a reasonable likelihood that such conduct will recur. Subjects risk retention groups to State no-fault automobile insurance requirements. Limits the authority to provide or purchase insurance under such Act to liability insurance.

States that the terms of any insurance policy provided or purchased under such Act shall not be construed to include coverage for punitive damages, or intentional fraudulent or criminal conduct, if any such coverage is prohibited by State law or declared unlawful by State supreme court decisions.

Sets forth general enforcement powers of any State insurance commissioner with respect to prohibited conduct by risk retention groups or purchasing groups.

Committees

The committees the bill was sent to, and what each did with it.

Data notes

A committee links to its page only where it exists in the current Congress; older and renamed committees are named without a link.

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Timeline

From introduction to signing, newest first: the committees, the floor and the president. 17 actions.

  1. Oct 27, 1986Became lawBecame law · Became Public Law No: 99-563.
  2. Became lawBecame law · Signed by President.
  3. Oct 17, 1986PresidentPresident · Presented to President.
  4. Oct 9, 1986Resolving differencesResolving differences · House Agreed to Senate Amendments to House Amendments by Unanimous Consent.
  5. Oct 6, 1986Resolving differencesResolving differences · Senate concurred in the House amendments with an amendment (SP 3251) by Voice Vote.
  6. Sep 23, 1986FloorFloor · Passed House (Amended) by Voice Vote.
  7. FloorFloor · Called up by House by Unanimous Consent.
  8. Jul 29, 1986CommitteeCommittee · Referred to Commerce, Consumer Protection, and Competitiveness Subcommittee of the House Energy and Commerce Committee
  9. Jul 21, 1986CommitteeCommittee · Referred to House Energy and Commerce Committee
  10. Jul 17, 1986FloorFloor · Passed Senate with an amendment by Yea-Nay Vote. 96-1. Record Vote No: 159.Senate roll call 159
  11. FloorFloor · Committee substitute, as amended, agreed to by Voice Vote.
  12. FloorFloor · Measure laid before Senate by unanimous consent.
  13. May 9, 1986CommitteeCommittee · Reported by Senate Commerce, Science, and Transportation Committee
  14. Mar 27, 1986CommitteeCommittee · Markup by Senate Commerce, Science, and Transportation Committee
  15. Mar 20, 1986CommitteeCommittee · Hearings by Consumer Affairs and Product Safety Subcommittee of the Senate Commerce, Science, and Transportation Committee
  16. Feb 28, 1986CommitteeCommittee · Referred to Senate Commerce, Science, and Transportation Committee
  17. IntroducedIntroduced · Introduced in the Senate
Data notes

Shows the introduction, each committee and subcommittee step the source dates (referral, hearings, markup, report, discharge), and the floor, conference, presidential and became-law steps. Calendar placements, messages between the chambers, amendments and committee report numbers are not shown for laws before the 108th Congress. Two entries the source lists twice are shown once.

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Official record

The bill’s full text and every action, including introduction and committee steps, are on Congress.gov. Data through Oct 7, 2026.