§ 27-7-10-27 — Purchasing groups; purchase of insurance from risk retention groups; limitations; notice to members; deductibles; aggregate limits

Indiana § 27-7-10-27

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 7: SPECIAL TYPES OF INSURANCE
• Ch. 10: Risk Retention Groups

Text

(a) A purchasing group may not purchase
insurance from a risk retention group that is not chartered in a state or
from an insurer not admitted in the state in which the purchasing group
is located, unless the purchase is effected through a licensed insurance
producer or broker acting under the surplus lines laws and regulations
of that state.
(b) A purchasing group that obtains liability insurance from an
insurer that is not admitted in Indiana or from a risk retention group
shall inform each of the members of the group who have a risk resident
or located in Indiana that the risk is not protected by an insurance
insolvency guaranty fund in Indiana and that the risk retention group
or insurer may not be subject to all insurance laws and rules of Indiana.
(c) No purchasing group may purchase insurance providing for a
deductible or self-insured retention applicable to the group as a whole.
However, coverage may provide for a deductible or self-insured
retention applicable to individual members of the purchasing group.
(d) Purchases of insurance by purchasing groups are subject to the
same standards regarding aggregate limits that are applicable to all
purchases of group insurance.

Legislative History

As added by P.L.162-1988, SEC.2. Amended by P.L.178-2003, SEC.50.