20-2408. 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 which is not admitted in the state in
which the purchasing group is located, unless the purchase is effected through a licensed
insurance producer.
B. No purchasing group may offer insurance policy coverage prohibited by this title
or declared unlawful by the supreme court of this state.
C. A purchasing group which obtains liability insurance from an insurer that is 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 rules of this state.
|