Restrictions on insurance purchased by purchasing groups.
[L 1987, c 180, pt of §1; am L 1989, c 272, §7; am L 1998, c 76, §1; am L 2002, c 155, §100; am L 2006, c 154, §42]
(a) A purchasing group located in this State may not purchase insurance from:
- (1) A risk retention group that is not chartered in this State; or
(2) An insurer not authorized in this State,
unless the purchase is made through a licensed producer acting pursuant to the surplus lines laws set forth in article 8 of chapter 431.
- (b) The terms of any liability insurance policy obtained by a purchasing group shall not provide nor be construed to provide insurance coverage prohibited by chapter 431 or declared unlawful by the highest court of this State.
- (c) A purchasing group which obtains liability insurance from an insurer not authorized 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 that the risk retention group or insurer may not be subject to any insurance laws of this State.
- (d) No purchasing group may purchase insurance providing for a deductible or self-insured retention unless the deductible or self-insured retention shall be the sole responsibility of each individual member of the purchasing group.
[L 1987, c 180, pt of §1; am L 1989, c 272, §7; am L 1998, c 76, §1; am L 2002, c 155, §100; am L 2006, c 154, §42]