Sec. 38a-260. (Formerly Sec. 38-540). Applicability of insurance laws to purchasing groups. Certain disclosures required. When.
Sec. 38a-260. (Formerly Sec. 38-540). Applicability of insurance laws to purchasing groups. Certain disclosures required. When. Any purchasing group meeting
the criteria established under the provisions of the Liability Risk Retention Act of 1986
shall be exempt from any law of this state relating to the creation of groups for the
purchase of insurance, prohibition of group purchasing or any law that would discriminate against a purchasing group or its members. Any insurer shall be exempt from any
law of this state which prohibits providing, or offering to provide, to a purchasing group
or its members advantages based on their loss and expense experience not afforded
to other persons with respect to rates, policy forms, coverage or other matters. Any
purchasing group shall be subject to all other applicable laws of this state. Any 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 this state, unless the purchase is effected
through a licensed producer acting pursuant to the surplus lines, laws and regulations
of this state. A purchasing group which obtains liability insurance from a risk retention
group or an insurer not admitted in this state 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
the Connecticut Insurance Guaranty Association, and that the risk retention group or
insurer may not be subject to all insurance laws and regulations of this state. No purchasing group may purchase insurance providing for a deductible or self-insured retention
applicable to the group as a whole; however, such coverage may provide for a deductible
or self-insured retention applicable to individual members.
(P.A. 87-135, S. 11, 18; P.A. 89-33, S. 4; P.A. 93-239, S. 26; P.A. 95-168, S. 4; P.A. 96-193, S. 7, 36.)
History: P.A. 89-33 required a purchasing group to purchase insurance from insurers admitted in this state unless
purchased through an agent or broker licensed in this state or from a risk retention group; Sec. 38-540 transferred to Sec.
38a-260 in 1991; P.A. 93-239 amended the section to require disclosure when the risk retention group or insurer is not
admitted in this state; P.A. 95-168 added provision to require that no purchasing group may purchase insurance on a
deductible or self-insured retention basis for a group as a whole but may provide such coverage on a deductible or self-insured retention basis if applicable to the individual members; P.A. 96-193 substituted "producer" for "agent or broker",
effective June 3, 1996.