§6095. Risk retention groups not chartered in this State
Risk retention groups chartered and licensed in states other than this State and seeking
to do business as a risk retention group in this State must comply with the laws of
this State in the following manner. [1987, c. 481, §3 (NEW).]
1. Notice of operations and designation of agent for service of process.
Before offering insurance in this State, a risk retention group shall submit to
the superintendent:
A. A statement identifying the state or states in which the risk retention group is chartered
and licensed as a liability insurance company, the date of chartering and organization,
its principal place of business and such other information, including information
on its membership, as the superintendent may require to verify that the risk retention
group is qualified under section 6093, subsection 13; [1987, c. 481, §3 (NEW).]
B. A copy of its plan of operation or a feasibility study and applicable revisions of
the plan or study submitted to its state of domicile, provided that the provision
relating to the submission of a plan of operation or a feasibility study does not
apply with respect to any line or classification of liability insurance that was defined
in the Product Liability Risk Retention Act of 1981 before October 27, 1986 and was
offered before that date by any risk retention group that had been chartered and operating
for not less than 3 years before that date; and [1997, c. 592, §73 (AMD).]
C. A designation of an agent for the purpose of receiving service of legal documents
or process. That designation is subject to the provisions of section 421, except that the appointment of a private agent is optional. A risk retention group that does not elect to designate an agent in accordance with
section 421, subsection 1 shall appoint the superintendent as its agent. [2013, c. 238, Pt. E, §3 (AMD).]
[
2013, c. 238, Pt. E, §3 (AMD)
.]
2. Financial condition.
Any risk retention group transacting business in this State shall submit to the
superintendent:
A. Annually, on or before March 1st, a copy of the group's financial statement submitted
to the state in which the risk retention group is chartered and licensed, which shall
be certified by an independent public accountant and contain a statement of opinion
on loss and loss adjustment expense reserves made by a member of the American Academy
of Actuaries who is qualified to certify casualty loss reserves; [1987, c. 481, §3 (NEW).]
B. A copy of each report of examination of the risk retention group as certified by the
superintendent or public official conducting the examination; [1987, c. 481, §3 (NEW).]
C. Upon request by the superintendent, a copy of any audit performed with respect to
the risk retention group; and [1987, c. 481, §3 (NEW).]
D. Such information as may be required to verify its continuing qualification as a risk
retention group under section 6093, subsection 13. [1987, c. 481, §3 (NEW).]
[
1987, c. 481, §3 (NEW)
.]
3. Taxation.
Each risk retention group shall be responsible for the payment of premium tax in
accordance with Title 36, section 2513-A.
[
1987, c. 481, §3 (NEW)
.]
4. Deceptive, false or fraudulent practices.
To the extent not preempted by the Risk Retention Amendments of 1986, any risk retention
group shall be subject to the provisions of chapter 23, and Title 5, chapter 10.
[
1987, c. 481, §3 (NEW)
.]
5. Examination regarding financial condition.
Any risk retention group must submit to an examination by the superintendent to
determine its financial condition if the superintendent of the jurisdiction in which
the group is chartered and licensed has not performed a timely examination or does
not initiate an examination within 90 days after a request by the superintendent.
Any such examination shall be coordinated to avoid unjustified repetition and conducted
in an expeditious manner and in accordance with the National Association of Insurance
Commissioner's Examiner Handbook, as applicable.
[
1987, c. 481, §3 (NEW)
.]
6. Notice to purchasers.
Any policy issued by a risk retention group shall contain in 10 point type on the
front page and the declaration page, the following notice:
"NOTICE
This policy is issued by your risk retention group. Your risk retention group may
not be subject to all of the insurance laws and regulations of your state. State
insurance insolvency guaranty funds are not available for your risk retention group."
[
1987, c. 481, §3 (NEW)
.]
7. Prohibited acts regarding solicitation or sale.
The following acts by a risk retention group are prohibited:
A. The solicitation or sale of insurance by a risk retention group to any person who
is not eligible for membership in those groups; and [1987, c. 481, §3 (NEW).]
B. The solicitation or sale of insurance by, or operation of, a risk retention group
that is in a hazardous financial condition or is financially impaired. [1987, c. 481, §3 (NEW).]
[
1987, c. 481, §3 (NEW)
.]
8. Prohibition on ownership by an insurance company.
No risk retention group shall be allowed to do business in this State if an insurance
company is directly or indirectly a member or owner of that risk retention group,
other than in the case of a risk retention group, all of whose members are insurance
companies.
[
1987, c. 481, §3 (NEW)
.]
9. Prohibited coverage.
No risk retention group may offer insurance policy coverage prohibited by the laws
of this State or by the Risk Retention Amendments of 1986.
[
1987, c. 481, §3 (NEW)
.]
10. Delinquency proceedings.
A risk retention group not chartered in this State and doing business in this State
must comply with a lawful order issued in a voluntary dissolution proceeding or in
a delinquency proceeding commenced by a state insurance superintendent if there has
been a finding of financial impairment after an examination under subsection 5.
[
1987, c. 481, §3 (NEW)
.]
SECTION HISTORY
1987, c. 481, §3 (NEW).
1997, c. 592, §73 (AMD).
2013, c. 238, Pt. E, §3 (AMD).
