Florida Bill Endangers Commercial Auto Coverage for RRG Members

By rrreporter.com

Florida Bill 516 (the Bill) was unanimously approved by the Committee on Banking and Insurance (Committee) of the Florida Senate at hearing held on March 22, 2023. The Bill would require risk retention groups writing commercial auto liability in Florida to carry a Financial Strength Rating of “A” or higher and be of a Financial Size Category (FSC) of VIII or above—$100+ million in policyholders’ surplus—from AM Best.

“Florida is already one of the most expensive states for truckers to obtain commercial auto coverage and RRGs provide critical competition in the state’s commercial auto market. Removing RRGs from that market would have a disastrous impact on all small business truckers in Florida, whether or not they insure through a risk retention group.”

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