(a) "Commissioner" means the insurance commissioner of this stateor the commissioner, director or superintendent of insurance in any other state.
(b) "Completed operations liability" means liability arisingout of the installation, maintenance or repair of any product at a site which is notowned or controlled by any person who: (1) Performs that work; or (2) hiresan independent contractor to perform that work; but shall include liabilityfor activities which are completed or abandoned before the date of theoccurrence giving rise to the liability.
(c) "Domicile", for purposes of determining the state in which apurchasing group is domiciled, means: (1) For a corporation, the state inwhich the purchasing group is incorporated; and (2) for an unincorporatedentity, the state of its principal place of business.
(d) "Hazardous financial condition" means that, based on its presentor reasonably anticipated financial condition, a risk retention group,although not yet financially impaired or insolvent, is unlikely to be ableto: (1) Meet obligations to policyholders with respect to known claims andreasonably anticipated claims; or (2) pay other obligations in the normalcourse of business.
(e) "Insurance" means primary insurance, excess insurance, reinsurance,surplus lines insurance, and any other arrangement for shifting anddistributing risk which is determined to be insurance under the laws of this state.
(f) "Liability" means legal liability for damages (including costs ofdefense, legal costs and fees, and other claims expenses) because ofinjuries to other persons, damage to their property, or other damage orloss to such other persons resulting from or arising out of: (1) Anybusiness (whether profit or nonprofit), trade, product, services (includingprofessional services), premises or operations; or (2) any activity of anystate or local government, or any agency or political subdivision thereof;and (3) does not include personal risk liability and an employer'sliability with respect to its employees other than legal liability underthe federal employers' liability act.
(g) "Personal risk liability" means liability for damages because ofinjury to any person, damage to property, or other loss or damage resultingfrom any personal, familial, or household responsibilities or activities,rather than from responsibilities or activities referred to in subsection (f).
(h) "Plan of operation or a feasibility study" means an analysis whichpresents the expected activities and results of a risk retention groupincluding, at a minimum: (1) The coverages, deductibles, coverage limits,rates and rating classification systems for each line of insurance thegroup intends to offer;
(2) historical and expected loss experience of the proposed membersand national experience of similar exposures;
(3) pro forma financial statements and projections;
(4) appropriate opinions by a qualified, independent casualty actuary,including a determination of minimum premium or participation levelsrequired to commence operations and to prevent a hazardous financial condition;
(5) identification of management, underwriting procedures, managerialoversight methods, investment policies; and
(6) such other matters as may be prescribed by the commissioner forliability insurance companies authorized by the insurance laws of the state.
(i) "Product liability" means liability fordamages because of any personal injury, death, emotionalharm, consequential economic damage, or property damage(including damages resulting from the loss of use of property) arisingout of the manufacture, design, importation,distribution, packaging, labeling, lease or sale of a product, but doesnot include theliability of any person for those damages if the product involved was inthe possession of such a person when the incident giving rise to the claim occurred.
(j) "Purchasing group" means any group which:
(1) Has as one of its purposes the purchase of liability insurance on a group basis;
(2) purchases such insurance only for its group members and only tocover their similar or related liability exposure, as described in subparagraph (3);
(3) is composed of members whose businesses or activities are similaror related with respect to the liability to which members are exposed byvirtue of any related, similar, or common business, trade, product,services, premises, or operations; and
(4) is domiciled in any state.
(k) "Risk retention group" means any corporation or other limitedliability association formed under the laws of any state,Bermuda, or the Cayman Islands:
(1) Whose primary activity consists of assuming and spreading all, orany portion, of the liability exposure of its group's members;
(2) which is organized for the primary purpose of conducting theactivity described in subparagraph (1);
(3) which is chartered and licensed as a liability insurance companyand authorized to engage in the business of insurance under the laws of anystate; or before January 1, 1985 was chartered or licensed and authorizedto engage in the business of insurance under the laws of Bermuda or theCayman Islands and, before such date, had certified to the insurancecommissioner of at least one state that it satisfied the capitalizationrequirements of such state, except that any such group shall be consideredto be a risk retention group only if it has been engaged in businesscontinuously since such date and only for the operations liability (as suchterms were defined in the product liability risk retention act of 1981before the date of the enactment of the risk retention act of 1986);
(4) which does not exclude any person from membership in the groupsolely to provide for members of such a group a competitive advantage oversuch a person;
(5) which has as its members only persons who have an ownershipinterest in the group and which has as its owners only persons who aremembers who are provided insurance by the risk retention group; or has asits sole member and sole owner an organization which is owned by personswho are provided insurance by the risk retention group;
(6) whose members are engaged in businesses or activities similar orrelated with respect to the liability of which such members are exposed byvirtue of any related, similar, or common business trade, product, services,premises, or operations;
(7) whose activities do not include the provision of insurance otherthan liability insurance for assuming and spreading all or any portion ofthe liability of its group members; and reinsurance with respect to theliability of any other risk retention group (or any members of such othergroup) which is engaged in businesses or activities so that such group ormember meets the requirement described in subparagraph (6) from membershipin the risk retention group which provides such reinsurance; and
(8) the name of which includes the phrase "risk retention group".
(l) "State" means any stateof the United States and the District of Columbia.
History: L. 1986, ch. 166, § 1;L. 1987, ch. 172, § 1; April 30.
(a) "Commissioner" means the insurance commissioner of this stateor the commissioner, director or superintendent of insurance in any other state.
(b) "Completed operations liability" means liability arisingout of the installation, maintenance or repair of any product at a site which is notowned or controlled by any person who: (1) Performs that work; or (2) hiresan independent contractor to perform that work; but shall include liabilityfor activities which are completed or abandoned before the date of theoccurrence giving rise to the liability.
(c) "Domicile", for purposes of determining the state in which apurchasing group is domiciled, means: (1) For a corporation, the state inwhich the purchasing group is incorporated; and (2) for an unincorporatedentity, the state of its principal place of business.
(d) "Hazardous financial condition" means that, based on its presentor reasonably anticipated financial condition, a risk retention group,although not yet financially impaired or insolvent, is unlikely to be ableto: (1) Meet obligations to policyholders with respect to known claims andreasonably anticipated claims; or (2) pay other obligations in the normalcourse of business.
(e) "Insurance" means primary insurance, excess insurance, reinsurance,surplus lines insurance, and any other arrangement for shifting anddistributing risk which is determined to be insurance under the laws of this state.
(f) "Liability" means legal liability for damages (including costs ofdefense, legal costs and fees, and other claims expenses) because ofinjuries to other persons, damage to their property, or other damage orloss to such other persons resulting from or arising out of: (1) Anybusiness (whether profit or nonprofit), trade, product, services (includingprofessional services), premises or operations; or (2) any activity of anystate or local government, or any agency or political subdivision thereof;and (3) does not include personal risk liability and an employer'sliability with respect to its employees other than legal liability underthe federal employers' liability act.
(g) "Personal risk liability" means liability for damages because ofinjury to any person, damage to property, or other loss or damage resultingfrom any personal, familial, or household responsibilities or activities,rather than from responsibilities or activities referred to in subsection (f).
(h) "Plan of operation or a feasibility study" means an analysis whichpresents the expected activities and results of a risk retention groupincluding, at a minimum: (1) The coverages, deductibles, coverage limits,rates and rating classification systems for each line of insurance thegroup intends to offer;
(2) historical and expected loss experience of the proposed membersand national experience of similar exposures;
(3) pro forma financial statements and projections;
(4) appropriate opinions by a qualified, independent casualty actuary,including a determination of minimum premium or participation levelsrequired to commence operations and to prevent a hazardous financial condition;
(5) identification of management, underwriting procedures, managerialoversight methods, investment policies; and
(6) such other matters as may be prescribed by the commissioner forliability insurance companies authorized by the insurance laws of the state.
(i) "Product liability" means liability fordamages because of any personal injury, death, emotionalharm, consequential economic damage, or property damage(including damages resulting from the loss of use of property) arisingout of the manufacture, design, importation,distribution, packaging, labeling, lease or sale of a product, but doesnot include theliability of any person for those damages if the product involved was inthe possession of such a person when the incident giving rise to the claim occurred.
(j) "Purchasing group" means any group which:
(1) Has as one of its purposes the purchase of liability insurance on a group basis;
(2) purchases such insurance only for its group members and only tocover their similar or related liability exposure, as described in subparagraph (3);
(3) is composed of members whose businesses or activities are similaror related with respect to the liability to which members are exposed byvirtue of any related, similar, or common business, trade, product,services, premises, or operations; and
(4) is domiciled in any state.
(k) "Risk retention group" means any corporation or other limitedliability association formed under the laws of any state,Bermuda, or the Cayman Islands:
(1) Whose primary activity consists of assuming and spreading all, orany portion, of the liability exposure of its group's members;
(2) which is organized for the primary purpose of conducting theactivity described in subparagraph (1);
(3) which is chartered and licensed as a liability insurance companyand authorized to engage in the business of insurance under the laws of anystate; or before January 1, 1985 was chartered or licensed and authorizedto engage in the business of insurance under the laws of Bermuda or theCayman Islands and, before such date, had certified to the insurancecommissioner of at least one state that it satisfied the capitalizationrequirements of such state, except that any such group shall be consideredto be a risk retention group only if it has been engaged in businesscontinuously since such date and only for the operations liability (as suchterms were defined in the product liability risk retention act of 1981before the date of the enactment of the risk retention act of 1986);
(4) which does not exclude any person from membership in the groupsolely to provide for members of such a group a competitive advantage oversuch a person;
(5) which has as its members only persons who have an ownershipinterest in the group and which has as its owners only persons who aremembers who are provided insurance by the risk retention group; or has asits sole member and sole owner an organization which is owned by personswho are provided insurance by the risk retention group;
(6) whose members are engaged in businesses or activities similar orrelated with respect to the liability of which such members are exposed byvirtue of any related, similar, or common business trade, product, services,premises, or operations;
(7) whose activities do not include the provision of insurance otherthan liability insurance for assuming and spreading all or any portion ofthe liability of its group members; and reinsurance with respect to theliability of any other risk retention group (or any members of such othergroup) which is engaged in businesses or activities so that such group ormember meets the requirement described in subparagraph (6) from membershipin the risk retention group which provides such reinsurance; and
(8) the name of which includes the phrase "risk retention group".
(l) "State" means any stateof the United States and the District of Columbia.
History: L. 1986, ch. 166, § 1;L. 1987, ch. 172, § 1; April 30.
(a) "Commissioner" means the insurance commissioner of this stateor the commissioner, director or superintendent of insurance in any other state.
(b) "Completed operations liability" means liability arisingout of the installation, maintenance or repair of any product at a site which is notowned or controlled by any person who: (1) Performs that work; or (2) hiresan independent contractor to perform that work; but shall include liabilityfor activities which are completed or abandoned before the date of theoccurrence giving rise to the liability.
(c) "Domicile", for purposes of determining the state in which apurchasing group is domiciled, means: (1) For a corporation, the state inwhich the purchasing group is incorporated; and (2) for an unincorporatedentity, the state of its principal place of business.
(d) "Hazardous financial condition" means that, based on its presentor reasonably anticipated financial condition, a risk retention group,although not yet financially impaired or insolvent, is unlikely to be ableto: (1) Meet obligations to policyholders with respect to known claims andreasonably anticipated claims; or (2) pay other obligations in the normalcourse of business.
(e) "Insurance" means primary insurance, excess insurance, reinsurance,surplus lines insurance, and any other arrangement for shifting anddistributing risk which is determined to be insurance under the laws of this state.
(f) "Liability" means legal liability for damages (including costs ofdefense, legal costs and fees, and other claims expenses) because ofinjuries to other persons, damage to their property, or other damage orloss to such other persons resulting from or arising out of: (1) Anybusiness (whether profit or nonprofit), trade, product, services (includingprofessional services), premises or operations; or (2) any activity of anystate or local government, or any agency or political subdivision thereof;and (3) does not include personal risk liability and an employer'sliability with respect to its employees other than legal liability underthe federal employers' liability act.
(g) "Personal risk liability" means liability for damages because ofinjury to any person, damage to property, or other loss or damage resultingfrom any personal, familial, or household responsibilities or activities,rather than from responsibilities or activities referred to in subsection (f).
(h) "Plan of operation or a feasibility study" means an analysis whichpresents the expected activities and results of a risk retention groupincluding, at a minimum: (1) The coverages, deductibles, coverage limits,rates and rating classification systems for each line of insurance thegroup intends to offer;
(2) historical and expected loss experience of the proposed membersand national experience of similar exposures;
(3) pro forma financial statements and projections;
(4) appropriate opinions by a qualified, independent casualty actuary,including a determination of minimum premium or participation levelsrequired to commence operations and to prevent a hazardous financial condition;
(5) identification of management, underwriting procedures, managerialoversight methods, investment policies; and
(6) such other matters as may be prescribed by the commissioner forliability insurance companies authorized by the insurance laws of the state.
(i) "Product liability" means liability fordamages because of any personal injury, death, emotionalharm, consequential economic damage, or property damage(including damages resulting from the loss of use of property) arisingout of the manufacture, design, importation,distribution, packaging, labeling, lease or sale of a product, but doesnot include theliability of any person for those damages if the product involved was inthe possession of such a person when the incident giving rise to the claim occurred.
(j) "Purchasing group" means any group which:
(1) Has as one of its purposes the purchase of liability insurance on a group basis;
(2) purchases such insurance only for its group members and only tocover their similar or related liability exposure, as described in subparagraph (3);
(3) is composed of members whose businesses or activities are similaror related with respect to the liability to which members are exposed byvirtue of any related, similar, or common business, trade, product,services, premises, or operations; and
(4) is domiciled in any state.
(k) "Risk retention group" means any corporation or other limitedliability association formed under the laws of any state,Bermuda, or the Cayman Islands:
(1) Whose primary activity consists of assuming and spreading all, orany portion, of the liability exposure of its group's members;
(2) which is organized for the primary purpose of conducting theactivity described in subparagraph (1);
(3) which is chartered and licensed as a liability insurance companyand authorized to engage in the business of insurance under the laws of anystate; or before January 1, 1985 was chartered or licensed and authorizedto engage in the business of insurance under the laws of Bermuda or theCayman Islands and, before such date, had certified to the insurancecommissioner of at least one state that it satisfied the capitalizationrequirements of such state, except that any such group shall be consideredto be a risk retention group only if it has been engaged in businesscontinuously since such date and only for the operations liability (as suchterms were defined in the product liability risk retention act of 1981before the date of the enactment of the risk retention act of 1986);
(4) which does not exclude any person from membership in the groupsolely to provide for members of such a group a competitive advantage oversuch a person;
(5) which has as its members only persons who have an ownershipinterest in the group and which has as its owners only persons who aremembers who are provided insurance by the risk retention group; or has asits sole member and sole owner an organization which is owned by personswho are provided insurance by the risk retention group;
(6) whose members are engaged in businesses or activities similar orrelated with respect to the liability of which such members are exposed byvirtue of any related, similar, or common business trade, product, services,premises, or operations;
(7) whose activities do not include the provision of insurance otherthan liability insurance for assuming and spreading all or any portion ofthe liability of its group members; and reinsurance with respect to theliability of any other risk retention group (or any members of such othergroup) which is engaged in businesses or activities so that such group ormember meets the requirement described in subparagraph (6) from membershipin the risk retention group which provides such reinsurance; and
(8) the name of which includes the phrase "risk retention group".
(l) "State" means any stateof the United States and the District of Columbia.
History: L. 1986, ch. 166, § 1;L. 1987, ch. 172, § 1; April 30.
