375.1080. As used in sections 375.1080 to 375.1105, the following termsmean:
(1) "Completed operations liability", liability arising out of theinstallation, maintenance, or repair of any product at a site which is notowned or controlled by:
(a) Any person who performs that work; or
(b) Any person who hires an independent contractor to perform that work;but shall include liability for activities which are completed or abandonedbefore the date of the occurrence giving rise to the liability;
(2) "Director", the director of the department of insurance, financialinstitutions and professional registration;
(3) "Domicile", for purposes of determining the state in which apurchasing group is domiciled, is:
(a) For a corporation, the state in which the purchasing group isincorporated; and
(b) For an unincorporated entity, the state of its principal place ofbusiness;
(4) "Hazardous financial condition", that, based on its present orreasonably anticipated financial condition, a risk retention group, althoughnot yet financially impaired or insolvent, is unlikely to be able:
(a) To meet obligations to policyholders with respect to known claimsand reasonably anticipated claims; or
(b) To pay other obligations in the normal course of business;
(5) "Insurance", 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 thisstate;
(6) "Liability":
(a) Legal liability for damages, including costs of defense, legal costsand fees, and other claims expenses, because of injuries to other persons,damage to their property, or other damage or loss to such other personsresulting from or arising out of:
a. Any business whether profit or nonprofit, trade, product, services,including professional services, premises, or operations; or
b. Any activity of any state or local government, or any agency orpolitical subdivision thereof; and
(b) Does not include personal risk liability and an employer's liabilitywith respect to its employees other than legal liability under the FederalEmployers' Liability Act (45 U.S.C. 51 et seq.);
(7) "Personal risk liability", liability for damages because of injuryto any person, damage to property, or other loss or damage resulting from anypersonal, familial, or household responsibilities or activities;
(8) "Plan of operation or a feasibility study", an analysis whichpresents the expected activities and results of a risk retention groupincluding, at a minimum:
(a) Information sufficient to verify that its members are engaged inbusinesses or activities similar or related with respect to the liability towhich such members are exposed by virtue of any related, similar or commonbusiness, trade, product, services, premises or operations;
(b) For each state in which it intends to operate, the coverages,deductibles, coverage limits, rates, and rating classification systems foreach line of insurance the group intends to offer;
(c) Historical and expected loss experience of the proposed members andnational experience of similar exposures to the extent that this experience isreasonably available;
(d) Pro forma financial statements and projections;
(e) Appropriate opinions by a qualified, independent casualty actuary,including a determination of minimum premium or participation levels requiredto commence operations and to prevent a hazardous financial condition;
(f) Identification of management, underwriting and claims procedures,marketing methods, managerial oversight methods, investment policies andreinsurance agreements;
(g) Identification of each state in which the risk retention group hasobtained, or sought to obtain, a charter and license, and a description of itsstatus in each such state; and
(h) Such other matters as may be prescribed by the commissioner of thestate in which the risk retention group is chartered for liability insurancecompanies authorized by the insurance laws of that state;
(9) "Product liability", liability for damages because of any personalinjury, death, emotional harm, consequential economic damage, or propertydamage, 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 does not include the liability ofany person for those damages if the product involved was in the possession ofsuch a person when the incident giving rise to the claim occurred;
(10) "Purchasing group", any group which:
(a) Has as one of its purposes the purchase of liability insurance on agroup basis;
(b) Purchases such insurance only for its group members and only tocover their similar or related liability exposure, as described in paragraph(c) of this subdivision;
(c) Is composed of members whose businesses or activities are similar orrelated with respect to the liability to which members are exposed by virtueof any related, similar or common business, trade, product, services, premisesor operations; and
(d) Is domiciled in any state;
(11) "Risk retention group", any corporation or other limited liabilityassociation:
(a) Whose primary activity consists of assuming and spreading all, orany portion, of the liability exposure of its group members;
(b) Which is organized for the primary purpose of conducting theactivity described under paragraph (a) of this subdivision;
(c) Which:
a. Is chartered and licensed as a liability insurance company andauthorized to engage in the business of insurance under the laws of any state;or
b. Before January 1, 1985, was chartered or licensed and authorized toengage in the business of insurance under the laws of Bermuda or the CaymanIslands and, before such date, had certified to the insurance commissioner ofat least one state that it satisfied the capitalization requirements of suchstate, except that any such group shall be considered to be a risk retentiongroup only if it has been engaged in business continuously since such date andonly for the purpose of continuing to provide insurance to cover productliability or completed operations liability;
(d) 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;
(e) Which:
a. Has as its owners only persons who comprise the membership of therisk retention group and who are provided insurance by such group; or
b. Has as its sole owner an organization which has as its members onlypersons who comprise the membership of the risk retention group and has as itsowners only persons who comprise the membership of the risk retention groupand who are provided insurance by such group;
(f) 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;
(g) Whose activities do not include the provision of insurance otherthan:
a. Liability insurance for assuming and spreading all or any portion ofthe liability of its group members; and
b. Reinsurance with respect to the liability of any other risk retentiongroup or any members of such other group which is engaged in businesses oractivities so that such group or member meets the requirement described inparagraph (f) of this subdivision from membership in the risk retention groupwhich provides such reinsurance; and
(h) The name of which includes the phrase "risk retention group";
(12) "State", any state of the United States or the District ofColumbia.
375.1080. As used in sections 375.1080 to 375.1105, the following termsmean:
(1) "Completed operations liability", liability arising out of theinstallation, maintenance, or repair of any product at a site which is notowned or controlled by:
(a) Any person who performs that work; or
(b) Any person who hires an independent contractor to perform that work;but shall include liability for activities which are completed or abandonedbefore the date of the occurrence giving rise to the liability;
(2) "Director", the director of the department of insurance, financialinstitutions and professional registration;
(3) "Domicile", for purposes of determining the state in which apurchasing group is domiciled, is:
(a) For a corporation, the state in which the purchasing group isincorporated; and
(b) For an unincorporated entity, the state of its principal place ofbusiness;
(4) "Hazardous financial condition", that, based on its present orreasonably anticipated financial condition, a risk retention group, althoughnot yet financially impaired or insolvent, is unlikely to be able:
(a) To meet obligations to policyholders with respect to known claimsand reasonably anticipated claims; or
(b) To pay other obligations in the normal course of business;
(5) "Insurance", 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 thisstate;
(6) "Liability":
(a) Legal liability for damages, including costs of defense, legal costsand fees, and other claims expenses, because of injuries to other persons,damage to their property, or other damage or loss to such other personsresulting from or arising out of:
a. Any business whether profit or nonprofit, trade, product, services,including professional services, premises, or operations; or
b. Any activity of any state or local government, or any agency orpolitical subdivision thereof; and
(b) Does not include personal risk liability and an employer's liabilitywith respect to its employees other than legal liability under the FederalEmployers' Liability Act (45 U.S.C. 51 et seq.);
(7) "Personal risk liability", liability for damages because of injuryto any person, damage to property, or other loss or damage resulting from anypersonal, familial, or household responsibilities or activities;
(8) "Plan of operation or a feasibility study", an analysis whichpresents the expected activities and results of a risk retention groupincluding, at a minimum:
(a) Information sufficient to verify that its members are engaged inbusinesses or activities similar or related with respect to the liability towhich such members are exposed by virtue of any related, similar or commonbusiness, trade, product, services, premises or operations;
(b) For each state in which it intends to operate, the coverages,deductibles, coverage limits, rates, and rating classification systems foreach line of insurance the group intends to offer;
(c) Historical and expected loss experience of the proposed members andnational experience of similar exposures to the extent that this experience isreasonably available;
(d) Pro forma financial statements and projections;
(e) Appropriate opinions by a qualified, independent casualty actuary,including a determination of minimum premium or participation levels requiredto commence operations and to prevent a hazardous financial condition;
(f) Identification of management, underwriting and claims procedures,marketing methods, managerial oversight methods, investment policies andreinsurance agreements;
(g) Identification of each state in which the risk retention group hasobtained, or sought to obtain, a charter and license, and a description of itsstatus in each such state; and
(h) Such other matters as may be prescribed by the commissioner of thestate in which the risk retention group is chartered for liability insurancecompanies authorized by the insurance laws of that state;
(9) "Product liability", liability for damages because of any personalinjury, death, emotional harm, consequential economic damage, or propertydamage, 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 does not include the liability ofany person for those damages if the product involved was in the possession ofsuch a person when the incident giving rise to the claim occurred;
(10) "Purchasing group", any group which:
(a) Has as one of its purposes the purchase of liability insurance on agroup basis;
(b) Purchases such insurance only for its group members and only tocover their similar or related liability exposure, as described in paragraph(c) of this subdivision;
(c) Is composed of members whose businesses or activities are similar orrelated with respect to the liability to which members are exposed by virtueof any related, similar or common business, trade, product, services, premisesor operations; and
(d) Is domiciled in any state;
(11) "Risk retention group", any corporation or other limited liabilityassociation:
(a) Whose primary activity consists of assuming and spreading all, orany portion, of the liability exposure of its group members;
(b) Which is organized for the primary purpose of conducting theactivity described under paragraph (a) of this subdivision;
(c) Which:
a. Is chartered and licensed as a liability insurance company andauthorized to engage in the business of insurance under the laws of any state;or
b. Before January 1, 1985, was chartered or licensed and authorized toengage in the business of insurance under the laws of Bermuda or the CaymanIslands and, before such date, had certified to the insurance commissioner ofat least one state that it satisfied the capitalization requirements of suchstate, except that any such group shall be considered to be a risk retentiongroup only if it has been engaged in business continuously since such date andonly for the purpose of continuing to provide insurance to cover productliability or completed operations liability;
(d) 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;
(e) Which:
a. Has as its owners only persons who comprise the membership of therisk retention group and who are provided insurance by such group; or
b. Has as its sole owner an organization which has as its members onlypersons who comprise the membership of the risk retention group and has as itsowners only persons who comprise the membership of the risk retention groupand who are provided insurance by such group;
(f) 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;
(g) Whose activities do not include the provision of insurance otherthan:
a. Liability insurance for assuming and spreading all or any portion ofthe liability of its group members; and
b. Reinsurance with respect to the liability of any other risk retentiongroup or any members of such other group which is engaged in businesses oractivities so that such group or member meets the requirement described inparagraph (f) of this subdivision from membership in the risk retention groupwhich provides such reinsurance; and
(h) The name of which includes the phrase "risk retention group";
(12) "State", any state of the United States or the District ofColumbia.
375.1080. As used in sections 375.1080 to 375.1105, the following termsmean:
(1) "Completed operations liability", liability arising out of theinstallation, maintenance, or repair of any product at a site which is notowned or controlled by:
(a) Any person who performs that work; or
(b) Any person who hires an independent contractor to perform that work;but shall include liability for activities which are completed or abandonedbefore the date of the occurrence giving rise to the liability;
(2) "Director", the director of the department of insurance, financialinstitutions and professional registration;
(3) "Domicile", for purposes of determining the state in which apurchasing group is domiciled, is:
(a) For a corporation, the state in which the purchasing group isincorporated; and
(b) For an unincorporated entity, the state of its principal place ofbusiness;
(4) "Hazardous financial condition", that, based on its present orreasonably anticipated financial condition, a risk retention group, althoughnot yet financially impaired or insolvent, is unlikely to be able:
(a) To meet obligations to policyholders with respect to known claimsand reasonably anticipated claims; or
(b) To pay other obligations in the normal course of business;
(5) "Insurance", 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 thisstate;
(6) "Liability":
(a) Legal liability for damages, including costs of defense, legal costsand fees, and other claims expenses, because of injuries to other persons,damage to their property, or other damage or loss to such other personsresulting from or arising out of:
a. Any business whether profit or nonprofit, trade, product, services,including professional services, premises, or operations; or
b. Any activity of any state or local government, or any agency orpolitical subdivision thereof; and
(b) Does not include personal risk liability and an employer's liabilitywith respect to its employees other than legal liability under the FederalEmployers' Liability Act (45 U.S.C. 51 et seq.);
(7) "Personal risk liability", liability for damages because of injuryto any person, damage to property, or other loss or damage resulting from anypersonal, familial, or household responsibilities or activities;
(8) "Plan of operation or a feasibility study", an analysis whichpresents the expected activities and results of a risk retention groupincluding, at a minimum:
(a) Information sufficient to verify that its members are engaged inbusinesses or activities similar or related with respect to the liability towhich such members are exposed by virtue of any related, similar or commonbusiness, trade, product, services, premises or operations;
(b) For each state in which it intends to operate, the coverages,deductibles, coverage limits, rates, and rating classification systems foreach line of insurance the group intends to offer;
(c) Historical and expected loss experience of the proposed members andnational experience of similar exposures to the extent that this experience isreasonably available;
(d) Pro forma financial statements and projections;
(e) Appropriate opinions by a qualified, independent casualty actuary,including a determination of minimum premium or participation levels requiredto commence operations and to prevent a hazardous financial condition;
(f) Identification of management, underwriting and claims procedures,marketing methods, managerial oversight methods, investment policies andreinsurance agreements;
(g) Identification of each state in which the risk retention group hasobtained, or sought to obtain, a charter and license, and a description of itsstatus in each such state; and
(h) Such other matters as may be prescribed by the commissioner of thestate in which the risk retention group is chartered for liability insurancecompanies authorized by the insurance laws of that state;
(9) "Product liability", liability for damages because of any personalinjury, death, emotional harm, consequential economic damage, or propertydamage, 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 does not include the liability ofany person for those damages if the product involved was in the possession ofsuch a person when the incident giving rise to the claim occurred;
(10) "Purchasing group", any group which:
(a) Has as one of its purposes the purchase of liability insurance on agroup basis;
(b) Purchases such insurance only for its group members and only tocover their similar or related liability exposure, as described in paragraph(c) of this subdivision;
(c) Is composed of members whose businesses or activities are similar orrelated with respect to the liability to which members are exposed by virtueof any related, similar or common business, trade, product, services, premisesor operations; and
(d) Is domiciled in any state;
(11) "Risk retention group", any corporation or other limited liabilityassociation:
(a) Whose primary activity consists of assuming and spreading all, orany portion, of the liability exposure of its group members;
(b) Which is organized for the primary purpose of conducting theactivity described under paragraph (a) of this subdivision;
(c) Which:
a. Is chartered and licensed as a liability insurance company andauthorized to engage in the business of insurance under the laws of any state;or
b. Before January 1, 1985, was chartered or licensed and authorized toengage in the business of insurance under the laws of Bermuda or the CaymanIslands and, before such date, had certified to the insurance commissioner ofat least one state that it satisfied the capitalization requirements of suchstate, except that any such group shall be considered to be a risk retentiongroup only if it has been engaged in business continuously since such date andonly for the purpose of continuing to provide insurance to cover productliability or completed operations liability;
(d) 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;
(e) Which:
a. Has as its owners only persons who comprise the membership of therisk retention group and who are provided insurance by such group; or
b. Has as its sole owner an organization which has as its members onlypersons who comprise the membership of the risk retention group and has as itsowners only persons who comprise the membership of the risk retention groupand who are provided insurance by such group;
(f) 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;
(g) Whose activities do not include the provision of insurance otherthan:
a. Liability insurance for assuming and spreading all or any portion ofthe liability of its group members; and
b. Reinsurance with respect to the liability of any other risk retentiongroup or any members of such other group which is engaged in businesses oractivities so that such group or member meets the requirement described inparagraph (f) of this subdivision from membership in the risk retention groupwhich provides such reinsurance; and
(h) The name of which includes the phrase "risk retention group";
(12) "State", any state of the United States or the District ofColumbia.
