Section 3. A risk retention group chartered and licensed in another state which seeks to do business as a risk retention group in the commonwealth shall comply with the laws of the commonwealth, and shall satisfy the following requirements:
(A)Before offering insurance in the commonwealth, a risk retention group shall submit to the commissioner:
(1)a statement identifying each state in which the risk retention group is chartered and licensed as a liability insurance company, its charter date, its principal place of business, and such other information on its membership, as the commissioner may require to verify that the risk retention group is qualified under the definition of ''Risk retention group'' in section one; and(2) a copy of its plan of operations or feasibility study and revision
Free access — add to your briefcase to read the full text and ask questions with AI
Section 3. A risk retention group chartered and licensed in another state which seeks to do business as a risk retention group in the commonwealth shall comply with the laws of the commonwealth, and shall satisfy the following requirements:(A) Before offering insurance in the commonwealth, a risk retention group shall submit to the commissioner:(1) a statement identifying each state in which the risk retention group is chartered and licensed as a liability insurance company, its charter date, its principal place of business, and such other information on its membership, as the commissioner may require to verify that the risk retention group is qualified under the definition of ''Risk retention group'' in section one; and(2) a copy of its plan of operations or feasibility study and revisions of or amendments to such plan or study submitted to the state in which the risk retention group is chartered and licensed; provided, however, that the provisions relating to the submission of a plan of operation or feasibility study shall not apply with respect to any line or classification of liability insurance which:(a) was defined in the Product Liability Risk Retention Act of 1981, (15 USC, Section 3901 et seq.), before October twenty-seventh, nineteen hundred and eighty-six; and (b) was offered before such date by any risk retention group which had been chartered and operating for not less than three years before such date.The risk retention group shall submit a copy to the commissioner of any subsequent revision or amendment to its plan of operation or feasibility study of this chapter at the same time that such revision is submitted to the licensing authority of its chartering state; and(3) a statement of registration, for which a filing fee shall be determined pursuant to section fourteen of chapter one hundred and seventy-five, which designates the commissioner as its agent for the purpose of receiving service of legal process; and(4) such other information as the commissioner may require.(B) Any risk retention group which seeks to do business in the commonwealth shall submit to the commissioner:(1) a copy of the group's most recent financial statement submitted to the state in which the risk retention group is chartered and licensed which:(a) is certified by an independent public accountant; and (b) contains a statement of opinion on loss and loss adjustment expense reserves made by a member of the American Academy of Actuaries or a loss reserve specialist qualified under criteria established by the commissioner; and(2) a copy of each examination of the risk retention group as certified by the commissioner or public official conducting the examination; and(3) upon request by the commissioner, a copy of any information or document pertaining to any outside audit performed with respect to the risk retention group; and(4) such information as may be required to verify its continuing qualification as a risk retention group under the definition of ''Risk retention group'' in section one; and(5) such other information as the commissioner may require.(C) Each risk retention group shall be liable for the payment of premium taxes and taxes on premiums of direct business for risks resident or located within the commonwealth, and shall report to the commissioner the net premiums written for risks resident or located within the commonwealth. Such risk retention group shall be subject to taxation, and any applicable fines and penalties related thereto, on the same basis as a foreign admitted insurer.(D) Any risk retention group, its agents, brokers and representatives shall be considered to be in the business of insurance for purposes of the applicability of chapter one hundred and seventy-six D.(E) Any risk retention group, its agents and representatives, shall comply with the laws of the commonwealth regarding false or fraudulent acts or practices. The commissioner shall have the same authority to enforce the General Laws against risk retention groups as he does against any insurance company.(F) Any risk retention group must submit to an examination by the commissioner to determine its financial condition if the commissioner of the jurisdiction in which the group is chartered and licensed has not initiated an examination or does not initiate an examination within sixty days after a request by the commissioner. Any such examination shall be coordinated by the examining authorities to avoid unjustified repetition and conducted in an expeditious manner.(G) Every application form for insurance from a risk retention group, and every policy, certificate, contract or other document evidencing insurance coverage issued by or on behalf of a risk retention group shall, on its front and declaration pages, contain in ten point type the following notice:NOTICEThis policy is issued by your risk retention group. Your risk retention group may not be subject to all of the insurance laws and regulations of your state. State insurance insolvency guaranty funds are not available for your risk retention group.(H) A risk retention group is hereby prohibited from:(1) solicitation or sale of insurance to any person who is not eligible for membership in such group; and(2) solicitation or sale of insurance by, or on behalf of, a risk retention group that is in hazardous financial condition or is financially impaired.(I) No risk retention group shall be allowed to do business in the commonwealth if an insurance company is directly or indirectly a member or owner of such risk retention group, other than in the case of a risk retention group which is all members are insurance companies.(J) The terms of any insurance policy issued by any risk retention group shall not provide, or be construed to provide, coverage prohibited generally by statutes of the commonwealth or declared unlawful by the highest court of a state whose law applies to such policy.(K) A risk retention group not chartered in the commonwealth and doing business in the commonwealth shall comply with a lawful order issued in a voluntary dissolution proceeding or in a delinquency proceeding commenced by a state insurance commissioner if there has been a finding of financial impairment after an examination under subsection (F).(L) A risk retention group that violates any provision of this chapter will be subject to fines and penalties applicable to licensed insurers generally, including revocation of its right to do business in the commonwealth.(M) In addition to complying with the other requirements of this section, any risk retention group operating in the commonwealth prior to enactment of this chapter shall, within thirty days after the effective date of this chapter, comply with the provision of subsection (A).