The Legislature finds and declares that for the purpose of creating a risk retention group, directors and officers of corporations, whether for profit or nonprofit, are engaged in the same line of business with respect to the liability risks faced by those officers and directors within the meaning of the federal Liability Risk Retention Act of 1986.
The Business of InsuranceRisk Retention
Section § 1870
This law states that when creating a risk retention group, the directors and officers of both for-profit and nonprofit corporations are considered to be dealing with the same business-related liability risks. This interpretation aligns with the federal Liability Risk Retention Act of 1986.
risk retention group directors and officers corporate liability
