§ 26.1-46-07 — Notice and registration requirements of purchasing groups

1. A purchasing group which intends to do business in this state shall, prior to doing
business, furnish notice to the commissioner on forms prescribed by the national
association of insurance commissioners which must do all of the following:
a. Identify the state in which the group is domiciled.
b. Identify all other states in which the group intends to do business.
c. Specify the lines and classifications of liability insurance which the purchasing
group intends to purchase.
d. Identify the insurance company from which the group intends to purchase its
insurance and the domicile of such company.
e. Specify the method by which, and the person or persons, if any, through whom
insurance will be offered to its members whose risks are resident or located in
this state.
f. Identify the principal place of business of the group.
g. Provide such other information as may be required by the commissioner to verify
that the purchasing group is qualified under subsection 10 of section 26.1-46-01.
2. A purchasing group shall, within ten days, notify the commissioner of any changes in
any of the items set forth in subsection 1.
3. The purchasing group shall register with and designate the insurance commissioner as
its agent solely for the purpose of receiving service of legal documents or process,
except that such requirements do not apply in the case of a purchasing group which
only purchases insurance that was authorized under the federal Products Liability Risk
Retention Act of 1981 to which all of the following apply:
a. The group was domiciled before April 1, 1986, and is domiciled on and after
October 27, 1986, in any state of the United States.
b. Before October 27, 1986, the group purchased insurance from an insurance
carrier licensed in any state and since October 27, 1986, the group purchased its
insurance from an insurance carrier licensed in any state.
c. The group was a purchasing group under the requirements of the federal Product
Liability Risk Retention Act of 1981 before October 27, 1986.
d. The group does not purchase insurance that was not authorized for purposes of
an exemption under that Act, as in effect before October 27, 1986.

e. Each purchasing group that is required to give notice pursuant to subsection 1
shall also furnish such information as may be required by the commissioner to
verify that the entity qualifies as a purchasing group, determine where the
purchasing group is located, and determine appropriate tax treatment.
f. Any purchasing group which was doing business in this state prior to the
enactment of this chapter shall, within thirty days after August 1, 1993, furnish
notice to the commissioner pursuant to the provisions of subsection 1 and furnish
such information as may be required pursuant to subsections 2 and 3.