§ 5909 — Restrictions on insurance obtained by purchasing groups

§ 5909. Restrictions on insurance obtained by purchasing groups. (a) A\npurchasing group located in this state shall not purchase liability\ninsurance from a risk retention group not chartered in a state or from\nan insurer not authorized in this state, unless the purchase is effected\npursuant to section two thousand one hundred eighteen of this chapter\nthrough an excess line broker licensed pursuant to section two thousand\none hundred five of this chapter, except where otherwise permitted\npursuant to section two thousand one hundred seventeen of this chapter.\n (b) The terms of any liability insurance policy issued or issued for\ndelivery in this state to a purchasing group or any of its members shall\nnot provide, or be construed to provide, insurance coverage prohibited\ngenerally by state statute or declared unlawful by the highest court of\nthe state whose law applies to such policy. If the law of this state\napplies to an insurance policy obtained by a purchasing group, the terms\nof that policy shall not provide or be construed to provide insurance\ncoverage prohibited generally by state statute or declared unlawful by\nthe highest court of this state which has construed such coverage.\n (c) A purchasing group which obtains liability insurance from an\ninsurer not authorized in this state or a risk retention group shall\ninform each of the members of such group which have a risk resident or\nlocated in this state that such risk is not protected by an insurance\ninsolvency security fund in this state, and that such risk retention\ngroup or such insurer may not be subject to all insurance laws and\nregulations of this state.\n (d) No liability insurance policy issued or issued for delivery in\nthis state to a purchasing group or a member of such group with a risk\nresident or located within this state shall provide for a deductible or\nself-insured retention shared among purchasing group members or\napplicable to the group itself.\n