§431K-3  Risk

retention groups not chartered in

this State.  Risk retention groups chartered in states other than this

State and seeking to do business as a risk retention group in this State shall

observe and abide by the laws of this State as follows:

     (1)  Before offering insurance in this State, a risk

retention group shall submit to the commissioner:

         (A)  A statement identifying the state or

states in which the risk retention group is chartered and licensed as a

liability insurance company, date of chartering, its principal place of

business, and other information, including information on its membership, as

the commissioner of this State may require to verify that the risk retention

group is qualified as a risk retention group;

         (B)  A copy of its plan of operations or a

feasibility study and revisions of this 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 shall not apply with respect to any line or classification

of liability insurance which was:

              (i)  Defined in the Product Liability Risk

Retention Act of 1981, 15 U.S.C. §3901 et seq., before October 27, 1986; and

             (ii)  Offered before that date by any risk

retention group which had been chartered and operating for not less than three

years before that date; and

         (C)  A statement of registration which

designates the commissioner as its agent for the purpose of receiving service

of legal documents or process;

     (2)  Any risk retention group doing business in this

State shall submit to the commissioner:

         (A)  A copy of each

examination of the risk retention group as certified by the commissioner or

public official conducting the examination in its state of domicile;

         (B)  Upon request by

the commissioner, a copy of any audit performed with respect to the risk

retention group; and

         (C)  Information as

may be required to verify its continuing qualification as a risk retention

group;

     (3)  Taxation of risk retention groups shall be as

follows:

         (A)  All premiums paid for coverages within

this State to risk retention groups shall be subject to taxation at the same

rate and subject to the same interest, fines, and penalties for nonpayment as

that applicable to risk retention group captives chartered in this State

pursuant to chapter 431, article 19;

         (B)  To the extent

producers are utilized, the producers shall report and pay the taxes for the

premiums for risks which the producers have placed with or on behalf of a risk

retention group not chartered in this State; or

         (C)  To the extent

producers are not utilized or fail to pay the tax, each risk retention group

shall pay the tax for risks insured within the State; provided that each risk

retention group shall report all premiums paid to it for risks insured within

the State;

     (4)  Any risk retention group shall comply with

chapter 431, article 13 regarding deceptive, false, or fraudulent acts or

practices, and unfair claims settlement practices; provided that if the

commissioner seeks an injunction regarding such conduct, the injunction shall

be obtained from a court of competent jurisdiction;

     (5)  Any risk retention

group shall submit to an examination by the commissioner to determine its

financial condition if the commissioner of the jurisdiction in which the group

is chartered has not initiated an examination or does not initiate an

examination within sixty days after a request by the commissioner of this

State.  Any examination shall be coordinated to avoid unjustified repetition

and conducted in an expeditious manner and in accordance with the National

Association of Insurance Commissioners' Examiner Handbook;

     (6)  The following notice

shall be printed in ten point type on the front page of every application for

insurance from a risk retention group, and on the front page and the

declaration page of every policy issued by a risk retention group:

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 rules of your state.  State insurance insolvency

guaranty funds are not available for your risk retention group;

     (7)  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 the

group; and

         (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;

     (8)  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 the risk retention group, other than in the case of a risk

retention group all of whose members are insurance companies;

     (9)  No risk retention group

may offer insurance policy coverage prohibited by chapter 431 or declared

unlawful by the highest court of this State; and

    (10)  A risk retention group

not chartered in this State and doing business in this State shall comply with

a lawful order issued in a voluntary dissolution proceeding or in a delinquency

proceeding commenced by any state insurance commissioner if there has been a

finding of financial impairment after an examination under paragraph (5). [L

1987, c 180, pt of §1; am L 1989, c 272, §4; am L 1993, c 205, §38; am L 2002,

c 155, §98; am L 2015, c 63, §8]