§ 5905 — Risk retention groups; notice, prohibited solicitation, coverage and ownership

New York § 5905

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 59: Risk Retention Groups and Purchasing Groups

Text

§ 5905. Risk retention groups; notice, prohibited solicitation,\ncoverage and ownership. (a) Notice to purchasers. (1) Every insurance\npolicy issued by a risk retention group shall contain in ten point type\non the front page and on the declaration page, the following notice:\n NOTICE\n This policy is issued by your risk retention group.\n Your risk retention group may not be subject to all\n of the insurance laws and regulations of your state.\n State insurance insolvency guaranty funds are not\n available for your risk retention group.\n (2) Every application for insurance from a risk retention group shall\nprominently contain a similar notice.\n (b) Prohibited acts regarding solicitation or sale. The following acts\nby a risk retention group are prohibited:\n (1) The solicitation or sale of insurance to any person who is not\neligible for membership in such group; and\n (2) The solicitation or sale of insurance by, or operation of, a risk\nretention group that is in a hazardous financial condition or is\nfinancially impaired.\n (c) Prohibited coverage. The terms of any insurance policy issued or\nissued for delivery in this state by any such risk retention group shall\nnot provide, or be construed to provide, coverage prohibited generally\nby statute of this state or declared unlawful by the highest court of\nthis state whose law applies to such policy.\n (d) Prohibition on ownership by an insurer. No risk retention group\nshall do business in this state if an insurer is directly or indirectly\na member or owner of such risk retention group, other than in the case\nof a risk retention group all of whose members are insurers.\n