§431K-8  Restrictions on insurance purchasedby purchasing groups.  (a)  A purchasing group located in this State maynot purchase insurance from:

(1)  A risk retention group that is not chartered inthis State; or

(2)  An insurer not authorized in this State,

unless the purchase is made through a licensedproducer acting pursuant to the surplus lines laws set forth in article 8 ofchapter 431.

(b)  The terms of any liability insurancepolicy obtained by a purchasing group shall not provide nor be construed toprovide insurance coverage prohibited by chapter 431 or declared unlawful bythe highest court of this State.

(c)  A purchasing group which obtains liabilityinsurance from an insurer not authorized in this State or a risk retentiongroup shall inform each of the members of the group which have a risk residentor located in this State that the risk retention group or insurer may not besubject to any insurance laws of this State.

(d)  No purchasing group may purchase insuranceproviding for a deductible or self-insured retention unless the deductible orself-insured retention shall be the sole responsibility of each individualmember of the purchasing group. [L 1987, c 180, pt of §1; am L 1989, c 272, §7;am L 1998, c 76, §1; am L 2002, c 155, §100; am L 2006, c 154, §42]