15 U.S.C. § 3905 : US Code - Section 3905: Clarification concerning permissible State authority

Search 15 U.S.C. § 3905 : US Code - Section 3905: Clarification concerning permissible State authority

(a) No exemption from State motor vehicle no-fault and motor
vehicle financial responsibility laws
Nothing in this chapter shall be construed to exempt a risk
retention group or purchasing group authorized under this chapter
from the policy form or coverage requirements of any State motor
vehicle no-fault or motor vehicle financial responsibility
insurance law.
(b) Applicability of exemptions
The exemptions provided under this chapter shall apply only to
the provision of liability insurance by a risk retention group or
the purchase of liability insurance by a purchasing group, and
nothing in this chapter shall be construed to permit the provision
or purchase of any other line of insurance by any such group.
(c) Prohibited insurance policy coverage
The terms of any insurance policy provided by a risk retention
group or purchased by a purchasing group shall not provide or be
construed to provide insurance policy coverage prohibited generally
by State statute or declared unlawful by the highest court of the
State whose law applies to such policy.
(d) State authority to specify acceptable means of demonstrating
financial responsibility
Subject to the provisions of section 3902(a)(4) of this title
relating to discrimination, nothing in this chapter shall be
construed to preempt the authority of a State to specify acceptable
means of demonstrating financial responsibility where the State has
required a demonstration of financial responsibility as a condition
for obtaining a license or permit to undertake specified
activities. Such means may include or exclude insurance coverage
obtained from an admitted insurance company, an excess lines
company, a risk retention group, or any other source regardless of
whether coverage is obtained directly from an insurance company or
through a broker, agent, purchasing group, or any other person.