§ 26-36-105 — Risk retention groups not chartered in this state

Wyoming § 26-36-105

• Jurisdiction: Wyoming
• Title 26: Insurance Code
• Ch. 36: RISK RETENTION

Text

(a) Risk retention groups chartered in states other than
this state and seeking to do business as a risk retention group
in this state must observe and abide by the laws of this state.
(b) Before offering insurance in this state, a risk
retention group shall submit to the commissioner:
(i) A statement identifying the state or states in
which the risk retention group is chartered and licensed as a
liability insurance company, date of chartering, its principal
place of business and such other information, including
information on its membership, as the commissioner of this state
may require to verify that the risk retention group is qualified
under W.S. 26-36-103(a)(xi);
(ii) A copy of its plan of operations or a
feasibility study and revisions of such plan or study submitted
to its state of domicile, except that the provision relating to
the submission of a plan of operation or a feasibility study
shall not apply with respect to any line or classification of
liability insurance which:
(A) Was defined in the Product Liability Risk
Retention Act of 1981 before October 27, 1986; and
(B) Was offered before such date by any risk
retention group which had been chartered and operating for not
less than three (3) years before such date.
(iii) A statement of registration which designates
the commissioner as its agent for the purpose of receiving
service of legal documents or process.
(c) Any risk retention group doing business in this state
shall submit the following documentation of financial condition
to the commissioner:
(i) A copy of the group's financial statement
submitted to its state of domicile, which shall be certified by
an independent public accountant and contain a statement of
opinion on loss and loss adjustment expense reserves made by a
member of the American Academy of Actuaries or a qualified loss
reserve specialist under criteria established by the National
Association of Insurance Commissioners;
(ii) A copy of each examination of the risk retention
group as certified by the commissioner or public official
conducting the examination;
(iii) Upon request by the commissioner, a copy of any
audit performed with respect to the risk retention group; and
(iv) Such information as may be required to verify
its continuing qualification as a risk retention group under
W.S. 26-36-103(a)(xi).
(d) All premiums paid for coverages within this state to
risk retention groups shall be subject to taxation at the same
rate and subject to the same interest, fines and penalties for
nonpayment as that applicable to foreign admitted insurers. To
the extent agents or brokers are utilized, they shall report and
pay the taxes for the premiums for risks which they have placed
with or on behalf of a risk retention group not chartered in
this state. To the extent agents or brokers are not utilized or
fail to pay the tax, each risk retention group shall pay the tax
for risks insured within the state. Further, each risk
retention group shall report all premiums paid to it for risks
insured within the state.
(e) Any risk retention group, its agents and
representatives shall comply with the law governing unfair
claims settlement practices, W.S. 26-13-124.
(f) Any risk retention group shall comply with the laws of
this state regarding deceptive, false or fraudulent acts or
practices. If the commissioner seeks an injunction regarding
such conduct, the injunction must be obtained from a court of
competent jurisdiction.
(g) Any risk retention group must submit to an examination
by the commissioner to determine its financial condition if the
commissioner of the jurisdiction in which the group is chartered
has not initiated an examination or does not initiate an
examination within sixty (60) days after a request by the
commissioner of this state. Any such examination shall be
coordinated to avoid unjustified repetition and conducted in an
expeditious manner and in accordance with the National
Association of Insurance Commissioners' Examiner Handbook.
(h) Any policy issued by a risk retention group shall
contain in ten point type on the front page and the declaration
page, the following notice:
NOTICE
This policy is issued by your risk retention group. Your risk
retention group may not be subject to all of the insurance laws
and regulations of your state. State insurance insolvency
guaranty funds are not available for your risk retention group.
(j) The following acts by a risk retention group are
hereby prohibited:
(i) The solicitation or sale of insurance by a risk
retention group to any person who is not eligible for membership
in such group; and
(ii) The solicitation or sale of insurance by, or
operation of, a risk retention group that is in a hazardous
financial condition or is financially impaired.
(k) No risk retention group shall be allowed to do
business in this state if an insurance company is directly or
indirectly a member or owner of such risk retention group, other
than in the case of a risk retention group all of whose members
are insurance companies.
(m) A risk retention group not chartered in this state and
doing business in this state must comply with a lawful order
issued in a voluntary dissolution proceeding or in a delinquency
proceeding commenced by a state insurance commissioner if there
has been a finding of financial impairment after an examination
under subsection (g) of this section.
(n) No risk retention group may offer insurance policy
coverage prohibited by this code or declared unlawful by the
highest court of this state.