Collapse to view only § 9671. Definitions
- § 9671. Definitions
- § 9672. State laws; scope of subchapter
- § 9673. Risk retention groups
- § 9674. Purchasing groups
- § 9675. Applicability of securities laws
§ 9671. Definitions
As used in this subchapter—
(1) Insurance
(2) Pollution liability
(3) Risk retention group
The term “risk retention group” means any corporation or other limited liability association taxable as a corporation, or as an insurance company, formed under the laws of any State—
(A) whose primary activity consists of assuming and spreading all, or any portion, of the pollution liability of its group members;
(B) which is organized for the primary purpose of conducting the activity described under subparagraph (A);
(C) which is chartered or licensed as an insurance company and authorized to engage in the business of insurance under the laws of any State; and
(D) which does not exclude any person from membership in the group solely to provide for members of such a group a competitive advantage over such a person.
(4) Purchasing group
(5) State
(Pub. L. 96–510, title IV, § 401, as added Pub. L. 99–499, title II, § 210(a), formerly § 210, Oct. 17, 1986, 100 Stat. 1716; renumbered § 210(a), Pub. L. 99–563, § 11(c)(1), Oct. 27, 1986, 100 Stat. 3177.)
§ 9672. State laws; scope of subchapter
(a) State laws
(b) Scope of subchapter
(Pub. L. 96–510, title IV, § 402, as added Pub. L. 99–499, title II, § 210(a), formerly § 210, Oct. 17, 1986, 100 Stat. 1716; renumbered § 210(a), Pub. L. 99–563, § 11(c)(1), Oct. 27, 1986, 100 Stat. 3177.)
§ 9673. Risk retention groups
(a) ExemptionExcept 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
(2) State regulations not subject to exemptionSubsection (a) 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 exemptionsThe exemptions specified in subsection (a) 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
(Pub. L. 96–510, title IV, § 403, as added Pub. L. 99–499, title II, § 210(a), formerly § 210, Oct. 17, 1986, 100 Stat. 1717; renumbered § 210(a), Pub. L. 99–563, § 11(c)(1), Oct. 27, 1986, 100 Stat. 3177.)
§ 9674. Purchasing groups
(a) ExemptionExcept as provided in this section, a purchasing group is exempt from the following:
(1) A State law, rule, or order which prohibits the establishment of a purchasing group.
(2) A State law, rule, or order which makes it unlawful for an insurer to provide or offer to provide insurance on a basis providing, to a purchasing group or its member, advantages, based on their loss and expense experience, not afforded to other persons with respect to rates, policy forms, coverages, or other matters.
(3) A State law, rule, or order which prohibits a purchasing group or its members from purchasing insurance on the group basis described in paragraph (2) of this subsection.
(4) A State law, rule, or order which prohibits a purchasing group from obtaining insurance on a group basis because the group has not been in existence for a minimum period of time or because any member has not belonged to the group for a minimum period of time.
(5) A State law, rule, or order which requires that a purchasing group must have a minimum number of members, common ownership or affiliation, or a certain legal form.
(6) A State law, rule, or order which requires that a certain percentage of a purchasing group must obtain insurance on a group basis.
(7) A State law, rule, or order which requires that any insurance policy issued to a purchasing group or any members of the group be countersigned by an insurance agent or broker residing in that State.
(8) A State law, rule, or order which otherwise discriminate 1
1 So in original. Probably should be “discriminates”.
against a purchasing group or any of its members.(b) Application of exemptionsThe exemptions specified in subsection (a) apply to the following:
(1)
(A) a purchasing group; or
(B) any person who is a member of a purchasing group.
(2) The sale of any one of the following to a purchasing group or a member of the group:
(A) Pollution liability insurance and comprehensive general liability coverage.
(B) Insurance related services.
(C) Management services.
(c) Agents or brokers
(Pub. L. 96–510, title IV, § 404, as added Pub. L. 99–499, title II, § 210(a), formerly § 210, Oct. 17, 1986, 100 Stat. 1718; renumbered § 210(a), Pub. L. 99–563, § 11(c)(1), Oct. 27, 1986, 100 Stat. 3177.)
§ 9675. Applicability of securities laws
(a) Ownership interests
The ownership interests of members of a risk retention group shall be considered to be—
(1) exempted securities for purposes of section 77e of title 15 and for purposes of section 78l of title 15; and
(2) securities for purposes of the provisions of section 77q of title 15 and the provisions of section 78j of title 15.
(b) Investment Company Act
(c) Blue sky law
(Pub. L. 96–510, title IV, § 405, as added Pub. L. 99–499, title II, § 210(a), formerly § 210, Oct. 17, 1986, 100 Stat. 1719; renumbered § 210(a), Pub. L. 99–563, § 11(c)(1), Oct. 27, 1986, 100 Stat. 3177.)