42 U.S.C. § 9673 : US Code - Section 9673: Risk retention groups

Search 42 U.S.C. § 9673 : US Code - Section 9673: Risk retention groups

(a) Exemption
Except as provided in this section, a risk retention group shall
be exempt from the following:
(1) A State law, rule, or order which makes unlawful, or
regulates, directly or indirectly, the operation of a risk
retention group.
(2) A State law, rule, or order which requires or permits a
risk retention group to participate in any insurance insolvency
guaranty association to which an insurer licensed in the State is
required to belong.
(3) A State law, rule, or order which requires any insurance
policy issued to a risk retention group or any member of the
group to be countersigned by an insurance agent or broker
residing in the State.
(4) A State law, rule, or order which otherwise discriminates
against a risk retention group or any of its members.
(b) Exceptions
(1) State laws generally applicable
Nothing in subsection (a) of this section shall be construed to
affect the applicability of State laws generally applicable to
persons or corporations. The State in which a risk retention
group is chartered may regulate the formation and operation of
the group.
(2) State regulations not subject to exemption
Subsection (a) of this section shall not apply to any State law
which requires a risk retention group to do any of the following:
(A) Comply with the unfair claim settlement practices law of
the State.
(B) Pay, on a nondiscriminatory basis, applicable premium and
other taxes which are levied on admitted insurers and surplus
line insurers, brokers, or policyholders under the laws of the
State.
(C) Participate, on a nondiscriminatory basis, in any
mechanism established or authorized under the law of the State
for the equitable apportionment among insurers of pollution
liability insurance losses and expenses incurred on policies
written through such mechanism.
(D) Submit to the appropriate authority reports and other
information required of licensed insurers under the laws of a
State relating solely to pollution liability insurance losses
and expenses.
(E) Register with and designate the State insurance
commissioner as its agent solely for the purpose of receiving
service of legal documents or process.
(F) Furnish, upon request, such commissioner a copy of any
financial report submitted by the risk retention group to the
commissioner of the chartering or licensing jurisdiction.
(G) Submit to an examination by the State insurance
commissioner in any State in which the group is doing business
to determine the group's financial condition, if -
(i) the commissioner has reason to believe the risk
retention group is in a financially impaired condition; and
(ii) the commissioner of the jurisdiction in which the
group is chartered has not begun or has refused to initiate
an examination of the group.
(H) Comply with a lawful order issued in a delinquency
proceeding commenced by the State insurance commissioner if the
commissioner of the jurisdiction in which the group is
chartered has failed to initiate such a proceeding after notice
of a finding of financial impairment under subparagraph (G).
(c) Application of exemptions
The exemptions specified in subsection (a) of this section apply
to -
(1) pollution liability insurance coverage provided by a risk
retention group for -
(A) such group; or
(B) any person who is a member of such group;
(2) the sale of pollution liability insurance coverage for a
risk retention group; and
(3) the provision of insurance related services or management
services for a risk retention group or any member of such a
group.
(d) Agents or brokers
A State may require that a person acting, or offering to act, as
an agent or broker for a risk retention group obtain a license from
that State, except that a State may not impose any qualification or
requirement which discriminates against a nonresident agent or
broker.