§ 5904. Risk retention groups not chartered in this state. A risk
retention group not chartered and licensed as a property/casualty
insurer in this state, seeking to do business or doing business as a
risk retention group in this state, shall comply with the laws of this
state, as follows:

(a) Notice of operations and designation of superintendent as agent.
Before offering insurance in this state, such risk retention group shall
submit to the superintendent:

(1) a statement identifying the state or states in which the risk
retention group is chartered and licensed as an insurance company to
write liability insurance, the dates of chartering and licensing, and
its principal place of business;

(2) a copy of its plan of operation or feasibility study and all
revisions of such plan or study submitted to its chartering and
licensing state; provided, however, that the provision relating to the
submission of a plan of operation or feasibility study shall not apply
with respect to any kind or classification of liability insurance which
was:

(A) defined in the federal Product Liability Risk Retention Act of
1981 before October twenty-seventh, nineteen hundred eighty-six; and

(B) offered before such date by any risk retention group which had
been chartered and was operating for not less than three years before
such date; and

(3) a statement of registration, for which a filing fee shall be
imposed in accordance with a regulation to be promulgated by the
superintendent, which statement of registration shall include a power of
attorney designating the superintendent as its agent for the purpose of
receiving service of process in any proceeding against it on a contract
delivered or issued for delivery, or on a cause of action arising, in
this state.

(A) The power of attorney shall be accompanied by written designation
of the name and address of the officer, agent, or other person to whom
such process shall be forwarded by the superintendent or his deputy on
behalf of such risk retention group. In the event such designation is
changed, a new certificate of designation shall be filed with the
superintendent within ten days of such change.

(B) Service of process upon a risk retention group pursuant to this
paragraph shall be made by serving the superintendent, any deputy
superintendent or any salaried employee of the department whom the
superintendent designates for such purpose with two copies thereof and
the payment of a fee of twenty dollars. The superintendent shall forward
a copy of such process by registered or certified mail to the risk
retention group at the address given in its written certificate of
designation, and shall keep a record of all such process served.
Service of process so made shall be deemed made within the territorial
jurisdiction of any court in this state.

(b) Financial condition. Any such risk retention group doing business
in this state, shall submit to the superintendent:

(1) a copy of the annual financial statement submitted to the state in
which the risk retention group is chartered and licensed, which shall be
certified by an independent public accountant and contain a statement of
opinion on loss and loss adjustment expense reserves made by a member of
the American Academy of Actuaries or a qualified loss reserve specialist
(under criteria established by the National Association of Insurance
Commissioners):

(2) a copy of each examination of the risk retention group as
certified by the commissioner or public official conducting the
examination;

(3) upon request by the superintendent, a copy of any audit performed
with respect to the risk retention group; and

(4) such information as may be required to verify its continuing
qualification as a risk retention group.

(c) Taxation. (1) Any such risk retention group shall be liable for
the payment of franchise taxes and taxes on premiums and shall report to
the superintendent the gross direct premiums, less returns thereon,
written on risks resident or located within this state. Any such risk
retention group shall be deemed to be a licensed foreign insurer for the
purposes of taxation, and any applicable fines and penalties related
thereto.

(2) Whenever licensed insurance agents or insurance brokers place
business with a risk retention group, such licensee shall report to the
superintendent the premiums of direct business for risks resident or
located within this state which they have placed with such risk
retention group, and such licensee shall keep a complete and separate
record of all policies procured from each such risk retention group,
which record shall be open to examination by the superintendent, as
provided in section three hundred ten of this chapter. These records
shall, for each policy and each kind of insurance provided thereunder,
include the following:

(A) the limit of liability;

(B) the time period covered;

(C) the effective date;

(D) the name of the risk retention group which issued the policy;

(E) the gross premium charged; and

(F) the amount of return premiums, if any.

(d) Compliance with unfair claims settlement practices law. Any such
risk retention group and its agents and representatives shall comply
with the unfair claims settlement practices provisions as set forth in
section two thousand six hundred one of this chapter, and any
regulations promulgated thereunder.

(e) Deceptive, false, or fraudulent acts or practices. Any such risk
retention group shall comply with the deceptive, false or fraudulent act
or practices provisions set forth in article twenty-four of this
chapter, and any regulations promulgated thereunder.

(f) Examination regarding financial condition. Any such risk retention
group shall submit to an examination by the superintendent to determine
its financial condition if the commissioner of the jurisdiction in which
the group is chartered and licensed has not initiated an examination or
does not initiate an examination within sixty days after a request by
the superintendent. Any such examination shall be coordinated with other
jurisdictions to the extent feasible in order to avoid unjustified
repetition, and shall be conducted in an expeditious manner.

(g) Injunctions. Any such risk retention group shall comply with an
injunction issued by a court of competent jurisdiction upon a petition
by the superintendent that the risk retention group is in hazardous
financial condition or financially impaired.

(h) Dissolution or article seventy-four proceedings. Any such risk
retention group shall comply with any lawful order issued in a voluntary
dissolution proceeding or in an article seventy-four proceeding
commenced by the superintendent if there has been a finding, after an
examination conducted pursuant to subsection (f) of this section, that
such risk retention group is financially impaired.

(i) Operation prior to enactment of this article. In addition to
complying with the requirements of this section, any such risk retention
group operating in this state prior to the enactment of this article
shall, within thirty days after the effective date of this article,
comply with the provisions of subsection (a) of this section.

(j) Penalties. Any such risk retention group which violates any
provision of this article shall be deemed to be a licensed foreign
insurer for the purposes of assessing fines and penalties and the
superintendent shall also have the authority to revoke such group's
right to do business in this state.