§ 26-36-103 — Definitions

(a) As used in this act:
(i) "Commissioner" means the commissioner of
insurance of this state or the commissioner, director or
superintendent of insurance in any other state;
(ii) "Completed operations liability" means liability
arising out of the installation, maintenance or repair of any
product at a site which is not owned or controlled by any person
who performs that work, or any person who hires an independent
contractor to perform that work, but includes liability for
activities which are completed or abandoned before the date of
the occurrence giving rise to the liability;
(iii) "Domicile" for purposes of determining the
state in which a purchasing group is domiciled, means:
(A) For a corporation, the state in which the
purchasing group is incorporated; and
(B) For an unincorporated entity, the state of
its principal place of business.
(iv) "Hazardous financial condition" means that,
based on its present or reasonably anticipated financial
condition, a risk retention group, although not yet financially
impaired or insolvent, is unlikely to be able:
(A) To meet obligations to policyholders with
respect to known claims and reasonably anticipated claims; or
(B) To pay other obligations in the normal
course of business.
(v) "Insurance" means primary insurance, excess
insurance, reinsurance, surplus lines insurance and any other
arrangement for shifting and distributing risk which is
determined to be insurance under the laws of this state;
(vi) "Liability" as used in the act means legal
liability for damages including costs of defense, legal costs
and fees, and other claims or expenses because of injuries to
other persons, damage to their property, or other damage or loss
to such other persons resulting from or arising out of any
business whether profit or nonprofit, trade, product, services
including professional services, premises or operations, or any
activity of any state or local government, or any agency or
political subdivision thereof except, the term does not include
personal risk liability or an employer's liability with respect
to its employees other than legal liability under the Federal
Employers' Liability Act (45 U.S.C. § 51 et seq.);
(vii) "Personal risk liability" means liability for
damages because of injury to any person, damage to property or
other loss or damage resulting from any personal, familial or
household responsibilities or activities, rather than from
responsibilities or activities referred to in subsection (vi) of
this section;
(viii) "Plan of operation or a feasibility study"
means an analysis which presents the expected activities and
results of a risk retention group including, at a minimum:
(A) The coverages, deductibles, coverage limits,
rates and rating classification systems for each line of
insurance the group intends to offer;
(B) Historical and expected loss experience of
the proposed members and national experience of similar
exposures to the extent that this experience is reasonably
available;
(C) Pro forma financial statements and
projections;
(D) Appropriate opinions by a qualified,
independent casualty actuary, including a determination of
minimum premium or participation levels required to commence
operations and to prevent a hazardous financial condition;
(E) Identification of management, underwriting
procedures, managerial oversight methods and investment
policies; and
(F) Such other matters as may be prescribed by
the commissioner for liability insurance companies authorized by
the insurance laws of the state in which the risk retention
group is chartered.
(ix) "Product liability" means liability for damages
because of any personal injury, death, emotional harm,
consequential economic damage or property damage including
damages resulting from the loss of use of property arising out
of the manufacture, design, importation, distribution,
packaging, labeling, lease or sale of a product, but does not
include the liability of any person for those damages if the
product involved was in the possession of such a person when the
incident giving rise to the claim occurred;
(x) "Purchasing group" means any group which:
(A) Has as one (1) of its purposes the purchase
of liability insurance on a group basis;
(B) Purchases such insurance only for its group
members and only to cover their similar or related liability
exposure, as described in subparagraph (C) of this paragraph;
(C) Is composed of members whose businesses or
activities are similar or related with respect to the liability
to which members are exposed by virtue of any related, similar
or common business, trade, product, services, premises or
operations; and
(D) Is domiciled in any state.
(xi) "Risk retention group" means any corporation or
other limited liability association formed under the laws of any
state, Bermuda or the Cayman Islands:
(A) Whose primary activity consists of assuming
and spreading all or any portion of the liability exposure of
its group members;
(B) Which is organized for the primary purpose
of conducting the activity described under subparagraph (A) of
this paragraph;
(C) Which is chartered and licensed as a
liability insurance company and authorized to engage in the
business of insurance under the laws of any state, or before
January 1, 1985 was chartered or licensed and authorized to
engage in the business of insurance under the laws of Bermuda or
the Cayman Islands and, before such date, had certified to the
insurance commissioner of at least one (1) state that it
satisfied the capitalization requirements of such state, except
that any such group shall be considered to be a risk retention
group only if it has been engaged in business continuously since
such date and only for the purpose of continuing to provide
insurance to cover product liability or completed operations
liability as such terms were defined in the Product Liability
Risk Retention Act of 1981 before the date of the enactment of
the Liability Risk Retention Act of 1986;
(D) Which does not exclude any person from
membership in the group solely to provide for members of such a
group a competitive advantage over such a person;
(E) Which has as its members only persons who
have an ownership interest in the group and which has as its
owners only persons who are members who are provided insurance
by the risk retention group, or has as its sole member and sole
owner an organization which is owned by persons who are provided
insurance by the risk retention group;
(F) Whose members are engaged in businesses or
activities similar or related to the liability of which such
members are exposed by virtue of any related, similar or common
business trade, product, services, premises or operations;
(G) Whose activities do not include the
provision of insurance other than liability insurance for
assuming and spreading all or any portion of the liability of
its group members and reinsurance with respect to the liability
of any other risk retention group or any members of such other
group which is engaged in businesses or activities so that such
group or member meets the requirement described in subparagraph
(F) of this paragraph from membership in the risk retention
group which provides such reinsurance;
(H) The name of which includes the phrase "Risk
Retention Group".
(xii) "State" means any state of the United States or
the District of Columbia;
(xiii) "This act" means W.S. 26-36-101 through