- (a) No purchasing group may offer insurance policy coverage prohibited by Section 533.5 or declared invalid by the Supreme Court of California.
(b) A purchasing group which obtains liability insurance from an insurer not admitted in this state or a risk retention group shall inform each of the members of the group which have a risk resident or located in this state all of the following:
- (1) The risk is not protected by an insurance insolvency guaranty fund in this state.
- (2) The risk retention group or such insurer may not be subject to all insurance laws and regulations of this state.