Which law allows only the home state to retain premium tax on multi-state risks?

The National Risk Retention Act (NRRA) is the correct answer because it establishes the principle that only the home state of the insured can impose a premium tax on multi-state risks. This law was enacted to facilitate the growth and use of risk retention groups and to simplify the regulatory framework for insurance across state lines. By allowing only the home state to retain tax revenues, the NRRA seeks to minimize the confusion and administrative burden that can arise when multiple states attempt to impose taxes on the same insurance premiums. This provision also encourages the establishment of risk retention groups, which are designed to help businesses manage their insurance needs more effectively while reducing costs.

In contrast, the other laws mentioned do not specifically address premium taxation in the context of multi-state insurance risks. The Risk Retention Act primarily focuses on the operation of risk retention groups, the Self-Funding Law pertains to employer self-funded health plans, and the Captive Insurance Act deals with captive insurance companies, which are distinct from the issues of multi-state premium taxation.