Liability Risk Retention Act of 1986

Liability Risk Retention Act of 1986 - Amends the Product Liability Risk Retention Act of 1981 to exempt risk retention groups and purchasing groups (businesses which organize to purchase personal risk and liability insurance on a group basis) from State laws which prohibit, regulate, or otherwise discriminate against such groups. Requires such groups' members to be similarly situated with respect to their exposure to the risk of liability.

Permits risk retention groups which are not chartered, licensed, or certified as liability insurance companies by any State to continue to provide insurance to cover product liability or completed operations liability as defined before the enactment of this Act. Requires risk retention groups to comply with State trade practices laws.

Allows the insurance commissioner of any State in which a risk retention group is doing business to examine the group's financial condition if the commissioner of the jurisdiction in which the group is charted has not begun such an examination.

Subjects such groups to State no-fault automobile insurance requirements. Limits the authority to provide insurance under such Act to liability insurance.

Requires a specified notice on all risk retention group policies.

Retitles such Act the Liability Risk Retention Act of 1986.