§ 27-46-9 - Restrictions on insurance purchased by purchasing groups.
SECTION 27-46-9
§ 27-46-9 Restrictions on insurancepurchased by purchasing groups. – (a) A purchasing group may not purchase insurance from a risk retention groupthat is not chartered in a state or from an insurer not admitted in the statein which the purchasing group is located, unless the purchase is effectedthrough a licensed agent or broker or insurance producer acting pursuant to thesurplus lines laws and regulations of that state.
(b) A purchasing group which obtains liability insurance froman insurer not admitted in this state or a risk retention group shall informeach of the members of the group which have a risk resident or located in thisstate that the risk is not protected by an insurance insolvency guaranty fundin this state, and that the risk retention group or the insurer may not besubject to all insurance laws and regulations of this state.
(c) No purchasing group may purchase insurance providing fora deductible or self insured retention applicable to the group as a whole;coverage may provide for a deductible or self insured retention applicable toindividual members.
(d) Purchases of insurance by purchasing groups are subjectto the same standards regarding aggregate limits which are applicable to allpurchases of group insurance.