§ 27-46-9. Restrictions on insurance purchased by purchasing groups.
(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 agent
or broker or insurance producer acting pursuant to the surplus lines laws and regulations
of that state.
(b) A purchasing group which obtains liability insurance from an insurer not admitted
in this state or a risk retention group shall inform each of the members of the group
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§ 27-46-9. Restrictions on insurance purchased by purchasing groups.
(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 agent
or broker or insurance producer acting pursuant to the surplus lines laws and regulations
of that state.
(b) A purchasing group which obtains liability insurance from an insurer not admitted
in this state or a risk retention group shall inform each of the members of the group
which have a risk resident or located in this state that the risk is not protected
by an insurance insolvency guaranty fund in this state, and that the risk retention
group or the insurer may not be subject to all insurance laws and regulations of this
state.
(c) No purchasing group may purchase insurance providing for a deductible or self-insured
retention applicable to the group as a whole; coverage may provide for a deductible
or self-insured retention applicable to individual members.
(d) Purchases of insurance by purchasing groups are subject to the same standards regarding
aggregate limits which are applicable to all purchases of group insurance.