§431K-8  Restrictions on insurance purchased
by purchasing groups.  (a)  A purchasing group located in this State may
not purchase insurance from:



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



(2)  An insurer not authorized in this State,



unless the purchase is made through a licensed
producer acting pursuant to the surplus lines laws set forth in article 8 of
chapter 431.



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



(c)  A purchasing group which obtains liability
insurance from an insurer not authorized 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 retention group or insurer may not be
subject to any insurance laws of this State.



(d)  No purchasing group may purchase insurance
providing for a deductible or self-insured retention unless the deductible or
self-insured retention shall be the sole responsibility of each individual
member 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]