WASHINGTON—A bipartisan group of congressmen introduced legislation Wednesday that would allow risk retention groups to write commercial property coverage.

The Risk Retention Modernization Act of 2010, which is sponsored by Reps. Dennis Moore, D-Kan., and John Campbell, R-Calif., also would provide a federal dispute resolution process in cases where RRGs believe they are being improperly regulated by nondomiciliary state regulators.

Risk retention groups currently are banned from writing property coverage.

The New York-based Risk & Insurance Management Society Inc. hailed the introduction of the bill.

“We've been supportive of Rep. Moore's efforts in the last Congress and the current effort,” said a spokeswoman for RIMS. “Anything that provides another venue for commercial property insurance, making it more affordable and available, is welcomed by RIMS.”

The Simpsonville, S.C.-based Self-Insurance Institute of America Inc. also praised the bill's introduction.

“SIIA has for many years supported both the availability of commercial property coverage to members of risk retention groups and the assurance of a consistent regulatory environment,” said Kevin Doherty, chair of SIIA's committee on alternative risk transfer, in a statement.

Mr. Doherty praised RIMS and the Minneapolis-based National Risk Retention Assn. for their involvement in the push for RRG expansion.

“This effort is a perfect example of how the alternative risk transfer industry can join together to promote good policy that advances competition in the insurance marketplace,” said Mr. Doherty in his statement.

About 250 RRGs are currently in operation.