Legislation
SECTION 5908
Notice and registration requirements of purchasing groups
Insurance (ISC) CHAPTER 28, ARTICLE 59
§ 5908. Notice and registration requirements of purchasing groups. (a)
A purchasing group which intends to do business in this state shall,
prior to doing such business, furnish notice of such intention to the
superintendent. This notice shall include the following information:
(1) the state in which the group is domiciled;
(2) the principal place of business of the group;
(3) the kinds and classifications of liability insurance which the
purchasing group intends to purchase;
(4) the method by which, and the person or persons if any through
whom, insurance will be offered to its members whose risks are resident
or located in this state;
(5) the name and chartering jurisdiction of the insurer or risk
retention group from which the purchasing group intends to purchase its
insurance; and
(6) all other states in which the group intends to do business.
(b) A purchasing group shall, as to any subsequent changes in any of
the items set forth in subsection (a) of this section, notify the
superintendent within ten days of any such change.
(c) Each purchasing group which is required to give notice pursuant to
subsection (a) of this section shall also furnish such information as
may be required by the superintendent to:
(1) verify that the entity qualifies as a purchasing group; and
(2) determine compliance with any applicable state law.
(d) A purchasing group which does business in this state shall submit
to the superintendent 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
certified power of attorney designating the superintendent as its agent
for the purpose of receiving service of legal documents or process.
(1) 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 legal documents or process shall be forwarded by the superintendent
or his deputy on behalf of such purchasing 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.
(2) Service of legal documents or process upon a purchasing group
pursuant to this subsection 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 legal documents or process by registered or
certified mail to the purchasing group at the address given in its
written certificate of designation, and shall keep a record of all legal
documents or process so served upon him. Service of legal documents or
process so made shall be deemed made within the territorial jurisdiction
of any court in this state.
(3) The registration and designation requirement of this subsection
shall not apply in the case of a purchasing group which only purchases
insurance that was authorized under the Federal Product Liability Risk
Retention Act of 1981; and
(A) was domiciled before April first, nineteen hundred eighty-six and
is domiciled on or after October twenty-seventh, nineteen hundred
eighty-six in any state;
(B) before October twenty-seventh, nineteen hundred eighty-six,
purchased liability insurance only from an insurer licensed in any state
and since October twenty-seventh, nineteen hundred eighty-six purchases
its liability insurance only from an insurer licensed in any state; and
(C) before October twenty-seventh, nineteen hundred eighty-six, was a
purchasing group under the requirements of the federal Product Liability
Risk Retention Act of 1981.
(e) Any purchasing group which was doing business in this state prior
to the enactment of this article shall, within thirty days after the
effective date of this article, furnish notice to the superintendent
pursuant to the provisions of subsection (a) of this section and furnish
such information as may be required pursuant to subsections (b), (c) and
(d) of this section.
A purchasing group which intends to do business in this state shall,
prior to doing such business, furnish notice of such intention to the
superintendent. This notice shall include the following information:
(1) the state in which the group is domiciled;
(2) the principal place of business of the group;
(3) the kinds and classifications of liability insurance which the
purchasing group intends to purchase;
(4) the method by which, and the person or persons if any through
whom, insurance will be offered to its members whose risks are resident
or located in this state;
(5) the name and chartering jurisdiction of the insurer or risk
retention group from which the purchasing group intends to purchase its
insurance; and
(6) all other states in which the group intends to do business.
(b) A purchasing group shall, as to any subsequent changes in any of
the items set forth in subsection (a) of this section, notify the
superintendent within ten days of any such change.
(c) Each purchasing group which is required to give notice pursuant to
subsection (a) of this section shall also furnish such information as
may be required by the superintendent to:
(1) verify that the entity qualifies as a purchasing group; and
(2) determine compliance with any applicable state law.
(d) A purchasing group which does business in this state shall submit
to the superintendent 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
certified power of attorney designating the superintendent as its agent
for the purpose of receiving service of legal documents or process.
(1) 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 legal documents or process shall be forwarded by the superintendent
or his deputy on behalf of such purchasing 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.
(2) Service of legal documents or process upon a purchasing group
pursuant to this subsection 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 legal documents or process by registered or
certified mail to the purchasing group at the address given in its
written certificate of designation, and shall keep a record of all legal
documents or process so served upon him. Service of legal documents or
process so made shall be deemed made within the territorial jurisdiction
of any court in this state.
(3) The registration and designation requirement of this subsection
shall not apply in the case of a purchasing group which only purchases
insurance that was authorized under the Federal Product Liability Risk
Retention Act of 1981; and
(A) was domiciled before April first, nineteen hundred eighty-six and
is domiciled on or after October twenty-seventh, nineteen hundred
eighty-six in any state;
(B) before October twenty-seventh, nineteen hundred eighty-six,
purchased liability insurance only from an insurer licensed in any state
and since October twenty-seventh, nineteen hundred eighty-six purchases
its liability insurance only from an insurer licensed in any state; and
(C) before October twenty-seventh, nineteen hundred eighty-six, was a
purchasing group under the requirements of the federal Product Liability
Risk Retention Act of 1981.
(e) Any purchasing group which was doing business in this state prior
to the enactment of this article shall, within thirty days after the
effective date of this article, furnish notice to the superintendent
pursuant to the provisions of subsection (a) of this section and furnish
such information as may be required pursuant to subsections (b), (c) and
(d) of this section.