Section 431K-3 - Risk retention groups not chartered in this StateRisk 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).Amended by L 2015, c 63,§ 8, eff. 5/28/2015.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 .