Nonresidents, requirements--requirements prior to operation--premiumtaxes, liability for--examination by director--policy application,required provisions--prohibited acts--penalties.
375.1085. 1. Risk retention groups chartered and licensedin states other than this state and seeking to do business as arisk retention group in this state shall comply with the laws ofthis state as provided in this section.
2. Before offering insurance in this state, a riskretention group shall submit to the director on the formsprescribed by the National Association of Insurance Commissionersfor such purposes:
(1) A statement identifying the state or states in whichthe risk retention group is chartered and licensed as a liabilityinsurance company, charter date, its principal place of business,and such other information, including information on itsmembership, as the director of this state may require to verifythat the risk retention group is qualified under subdivision (1)of section 375.1080;
(2) A copy of its plan of operations or feasibility studyand revisions of such plan or study submitted to the state inwhich the risk retention group is chartered and licensed, exceptthat the provision relating to the submission of a plan ofoperation or feasibility study shall not apply with respect toany line or classification of liability insurance which wasdefined in the Product Liability Risk Retention Act of 1981before October 27, 1986, and was offered before such date by anyrisk retention group which had been chartered and operating fornot less than three years before such date.
3. The risk retention group shall submit a statement ofregistration, for which a filing fee shall be determined by thedirector, which designates the commissioner as its agent for thepurpose of receiving service of legal documents or process.
4. The risk retention group shall submit a copy of anyrevision to its plan of operation or feasibility study requiredby subsection 2 of section 375.1082 at the same time that therevision is submitted to the chief insurance regulatory officialof its chartering state.
5. Any risk retention group doing business in this stateshall submit to the director:
(1) A copy of the group's financial statement submitted tothe state in which the risk retention group is chartered andlicensed which shall be certified by an independent publicaccountant and contain a statement of opinion on loss and lossadjustment expense reserves made by a member of the AmericanAcademy of Actuaries or a qualified loss reserve specialist;
(2) A copy of each examination of the risk retention groupas certified by the director or public official conducting theexamination;
(3) Upon request by the director, a copy of any informationor document pertaining to any outside audit performed withrespect to the risk retention group; and
(4) Such information as may be required to verify itscontinuing qualification as a risk retention group undersubdivision (11) of section 375.1080.
6. Each risk retention group shall be liable for thepayment of premium taxes and taxes on premiums of direct businessfor risks resident or located within this state, and shall reportto the director the net premiums written for risks resident orlocated within this state. Such risk retention group shall besubject to taxation, and any applicable fines and penaltiesrelated thereto, on the same basis as a foreign admitted insurer.To the extent licensed agents or brokers are used pursuant tosection 375.1102, they shall report to the director the premiumsfor direct business for risks resident or located within thisstate which such licensees have placed with or on behalf of arisk retention group not chartered in this state. To the extentthat insurance agents or brokers are used pursuant to section375.1102, such agent or broker shall keep a complete and separaterecord of all policies procured from each such risk retentiongroup, which record shall be open to examination by the director.These records shall, for each policy and each kind of insuranceprovided thereunder, include the following:
(1) The limit of liability;
(2) The time period covered;
(3) The effective date;
(4) The name of the risk retention group which issued thepolicy;
(5) The gross premium charged; and
(6) The amount of return premiums, if any.
7. Any risk retention group, its agents and representativesshall comply with sections 375.1000 to 375.1018.
8. Any risk retention group must submit to an examinationby the director to determine its financial condition if thecommissioner of the jurisdiction in which the group is charteredand licensed has not initiated an examination or does notinitiate an examination within sixty days after a request by thedirector of this state. Any such examination shall becoordinated to avoid unjustified repetition and conducted in anexpeditious manner and in accordance with the NAIC's ExaminerHandbook.
9. Every application form for insurance from a riskretention group, and every policy, on its front and declarationpages, issued by a risk retention group, shall contain in tenpoint type the following notice:
"NOTICE
This policy is issued by your risk retention group. Yourrisk retention group may not be subject to all of the insurancelaws and regulations of your state. State insurance insolvencyguaranty funds are not available for your risk retention group."
10. The following acts by a risk retention group are herebyprohibited:
(1) The solicitation or sale of insurance by a riskretention group to any person who is not eligible for membershipin such group; and
(2) The solicitation or sale of insurance by, or operationof, a risk retention group that is in hazardous financialcondition or financially impaired.
11. No risk retention group shall be allowed to do businessin this state if an insurance company is directly or indirectly amember or owner of such risk retention group, other than in thecase of a risk retention group all of whose members are insurancecompanies.
12. The terms of any insurance policy issued by any riskretention group shall not provide, or be construed to provide,coverage prohibited generally by statute of this state ordeclared unlawful by the highest court of this state whose lawapplies to such policy.
13. A risk retention group not chartered in this state anddoing business in this state shall comply with a lawful orderissued in a voluntary dissolution proceeding or in a delinquencyproceeding commenced by the director if there has been a findingof financial impairment after an examination under subsection 8of this section.
14. A risk retention group that violates any provision ofsections 375.1080 to 375.1105 will be subject to fines andpenalties including revocation of its right to do business inthis state, applicable to licensed insurers generally.
15. In addition to complying with the requirements of thissection, any risk retention group operating in this state priorto enactment of sections 375.1080 to 375.1105 shall, withinthirty days after August 28, 1991, comply with the provisions ofsubsection 2 of this section.
Nonresidents, requirements--requirements prior to operation--premiumtaxes, liability for--examination by director--policy application,required provisions--prohibited acts--penalties.
375.1085. 1. Risk retention groups chartered and licensedin states other than this state and seeking to do business as arisk retention group in this state shall comply with the laws ofthis state as provided in this section.
2. Before offering insurance in this state, a riskretention group shall submit to the director on the formsprescribed by the National Association of Insurance Commissionersfor such purposes:
(1) A statement identifying the state or states in whichthe risk retention group is chartered and licensed as a liabilityinsurance company, charter date, its principal place of business,and such other information, including information on itsmembership, as the director of this state may require to verifythat the risk retention group is qualified under subdivision (1)of section 375.1080;
(2) A copy of its plan of operations or feasibility studyand revisions of such plan or study submitted to the state inwhich the risk retention group is chartered and licensed, exceptthat the provision relating to the submission of a plan ofoperation or feasibility study shall not apply with respect toany line or classification of liability insurance which wasdefined in the Product Liability Risk Retention Act of 1981before October 27, 1986, and was offered before such date by anyrisk retention group which had been chartered and operating fornot less than three years before such date.
3. The risk retention group shall submit a statement ofregistration, for which a filing fee shall be determined by thedirector, which designates the commissioner as its agent for thepurpose of receiving service of legal documents or process.
4. The risk retention group shall submit a copy of anyrevision to its plan of operation or feasibility study requiredby subsection 2 of section 375.1082 at the same time that therevision is submitted to the chief insurance regulatory officialof its chartering state.
5. Any risk retention group doing business in this stateshall submit to the director:
(1) A copy of the group's financial statement submitted tothe state in which the risk retention group is chartered andlicensed which shall be certified by an independent publicaccountant and contain a statement of opinion on loss and lossadjustment expense reserves made by a member of the AmericanAcademy of Actuaries or a qualified loss reserve specialist;
(2) A copy of each examination of the risk retention groupas certified by the director or public official conducting theexamination;
(3) Upon request by the director, a copy of any informationor document pertaining to any outside audit performed withrespect to the risk retention group; and
(4) Such information as may be required to verify itscontinuing qualification as a risk retention group undersubdivision (11) of section 375.1080.
6. Each risk retention group shall be liable for thepayment of premium taxes and taxes on premiums of direct businessfor risks resident or located within this state, and shall reportto the director the net premiums written for risks resident orlocated within this state. Such risk retention group shall besubject to taxation, and any applicable fines and penaltiesrelated thereto, on the same basis as a foreign admitted insurer.To the extent licensed agents or brokers are used pursuant tosection 375.1102, they shall report to the director the premiumsfor direct business for risks resident or located within thisstate which such licensees have placed with or on behalf of arisk retention group not chartered in this state. To the extentthat insurance agents or brokers are used pursuant to section375.1102, such agent or broker shall keep a complete and separaterecord of all policies procured from each such risk retentiongroup, which record shall be open to examination by the director.These records shall, for each policy and each kind of insuranceprovided thereunder, include the following:
(1) The limit of liability;
(2) The time period covered;
(3) The effective date;
(4) The name of the risk retention group which issued thepolicy;
(5) The gross premium charged; and
(6) The amount of return premiums, if any.
7. Any risk retention group, its agents and representativesshall comply with sections 375.1000 to 375.1018.
8. Any risk retention group must submit to an examinationby the director to determine its financial condition if thecommissioner of the jurisdiction in which the group is charteredand licensed has not initiated an examination or does notinitiate an examination within sixty days after a request by thedirector of this state. Any such examination shall becoordinated to avoid unjustified repetition and conducted in anexpeditious manner and in accordance with the NAIC's ExaminerHandbook.
9. Every application form for insurance from a riskretention group, and every policy, on its front and declarationpages, issued by a risk retention group, shall contain in tenpoint type the following notice:
"NOTICE
This policy is issued by your risk retention group. Yourrisk retention group may not be subject to all of the insurancelaws and regulations of your state. State insurance insolvencyguaranty funds are not available for your risk retention group."
10. The following acts by a risk retention group are herebyprohibited:
(1) The solicitation or sale of insurance by a riskretention group to any person who is not eligible for membershipin such group; and
(2) The solicitation or sale of insurance by, or operationof, a risk retention group that is in hazardous financialcondition or financially impaired.
11. No risk retention group shall be allowed to do businessin this state if an insurance company is directly or indirectly amember or owner of such risk retention group, other than in thecase of a risk retention group all of whose members are insurancecompanies.
12. The terms of any insurance policy issued by any riskretention group shall not provide, or be construed to provide,coverage prohibited generally by statute of this state ordeclared unlawful by the highest court of this state whose lawapplies to such policy.
13. A risk retention group not chartered in this state anddoing business in this state shall comply with a lawful orderissued in a voluntary dissolution proceeding or in a delinquencyproceeding commenced by the director if there has been a findingof financial impairment after an examination under subsection 8of this section.
14. A risk retention group that violates any provision ofsections 375.1080 to 375.1105 will be subject to fines andpenalties including revocation of its right to do business inthis state, applicable to licensed insurers generally.
15. In addition to complying with the requirements of thissection, any risk retention group operating in this state priorto enactment of sections 375.1080 to 375.1105 shall, withinthirty days after August 28, 1991, comply with the provisions ofsubsection 2 of this section.
Nonresidents, requirements--requirements prior to operation--premiumtaxes, liability for--examination by director--policy application,required provisions--prohibited acts--penalties.
375.1085. 1. Risk retention groups chartered and licensedin states other than this state and seeking to do business as arisk retention group in this state shall comply with the laws ofthis state as provided in this section.
2. Before offering insurance in this state, a riskretention group shall submit to the director on the formsprescribed by the National Association of Insurance Commissionersfor such purposes:
(1) A statement identifying the state or states in whichthe risk retention group is chartered and licensed as a liabilityinsurance company, charter date, its principal place of business,and such other information, including information on itsmembership, as the director of this state may require to verifythat the risk retention group is qualified under subdivision (1)of section 375.1080;
(2) A copy of its plan of operations or feasibility studyand revisions of such plan or study submitted to the state inwhich the risk retention group is chartered and licensed, exceptthat the provision relating to the submission of a plan ofoperation or feasibility study shall not apply with respect toany line or classification of liability insurance which wasdefined in the Product Liability Risk Retention Act of 1981before October 27, 1986, and was offered before such date by anyrisk retention group which had been chartered and operating fornot less than three years before such date.
3. The risk retention group shall submit a statement ofregistration, for which a filing fee shall be determined by thedirector, which designates the commissioner as its agent for thepurpose of receiving service of legal documents or process.
4. The risk retention group shall submit a copy of anyrevision to its plan of operation or feasibility study requiredby subsection 2 of section 375.1082 at the same time that therevision is submitted to the chief insurance regulatory officialof its chartering state.
5. Any risk retention group doing business in this stateshall submit to the director:
(1) A copy of the group's financial statement submitted tothe state in which the risk retention group is chartered andlicensed which shall be certified by an independent publicaccountant and contain a statement of opinion on loss and lossadjustment expense reserves made by a member of the AmericanAcademy of Actuaries or a qualified loss reserve specialist;
(2) A copy of each examination of the risk retention groupas certified by the director or public official conducting theexamination;
(3) Upon request by the director, a copy of any informationor document pertaining to any outside audit performed withrespect to the risk retention group; and
(4) Such information as may be required to verify itscontinuing qualification as a risk retention group undersubdivision (11) of section 375.1080.
6. Each risk retention group shall be liable for thepayment of premium taxes and taxes on premiums of direct businessfor risks resident or located within this state, and shall reportto the director the net premiums written for risks resident orlocated within this state. Such risk retention group shall besubject to taxation, and any applicable fines and penaltiesrelated thereto, on the same basis as a foreign admitted insurer.To the extent licensed agents or brokers are used pursuant tosection 375.1102, they shall report to the director the premiumsfor direct business for risks resident or located within thisstate which such licensees have placed with or on behalf of arisk retention group not chartered in this state. To the extentthat insurance agents or brokers are used pursuant to section375.1102, such agent or broker shall keep a complete and separaterecord of all policies procured from each such risk retentiongroup, which record shall be open to examination by the director.These records shall, for each policy and each kind of insuranceprovided thereunder, include the following:
(1) The limit of liability;
(2) The time period covered;
(3) The effective date;
(4) The name of the risk retention group which issued thepolicy;
(5) The gross premium charged; and
(6) The amount of return premiums, if any.
7. Any risk retention group, its agents and representativesshall comply with sections 375.1000 to 375.1018.
8. Any risk retention group must submit to an examinationby the director to determine its financial condition if thecommissioner of the jurisdiction in which the group is charteredand licensed has not initiated an examination or does notinitiate an examination within sixty days after a request by thedirector of this state. Any such examination shall becoordinated to avoid unjustified repetition and conducted in anexpeditious manner and in accordance with the NAIC's ExaminerHandbook.
9. Every application form for insurance from a riskretention group, and every policy, on its front and declarationpages, issued by a risk retention group, shall contain in tenpoint type the following notice:
"NOTICE
This policy is issued by your risk retention group. Yourrisk retention group may not be subject to all of the insurancelaws and regulations of your state. State insurance insolvencyguaranty funds are not available for your risk retention group."
10. The following acts by a risk retention group are herebyprohibited:
(1) The solicitation or sale of insurance by a riskretention group to any person who is not eligible for membershipin such group; and
(2) The solicitation or sale of insurance by, or operationof, a risk retention group that is in hazardous financialcondition or financially impaired.
11. No risk retention group shall be allowed to do businessin this state if an insurance company is directly or indirectly amember or owner of such risk retention group, other than in thecase of a risk retention group all of whose members are insurancecompanies.
12. The terms of any insurance policy issued by any riskretention group shall not provide, or be construed to provide,coverage prohibited generally by statute of this state ordeclared unlawful by the highest court of this state whose lawapplies to such policy.
13. A risk retention group not chartered in this state anddoing business in this state shall comply with a lawful orderissued in a voluntary dissolution proceeding or in a delinquencyproceeding commenced by the director if there has been a findingof financial impairment after an examination under subsection 8of this section.
14. A risk retention group that violates any provision ofsections 375.1080 to 375.1105 will be subject to fines andpenalties including revocation of its right to do business inthis state, applicable to licensed insurers generally.
15. In addition to complying with the requirements of thissection, any risk retention group operating in this state priorto enactment of sections 375.1080 to 375.1105 shall, withinthirty days after August 28, 1991, comply with the provisions ofsubsection 2 of this section.
