S*1086 Session 107 (1987-1988)
S*1086(Rat #0371, Act #0355 of 1988) General Bill, By
Senate Banking and Insurance
Similar(S 994, H 3451)
A Bill to amend Title 38, Code of Laws of South Carolina, 1976, relating to
insurance, by adding Chapter 87 so as to provide for the regulation and
taxation of risk retention groups and purchasing groups authorized under the
Federal Liability Risk Retention Act of 1986, including the provision of
certain penalties.
01/26/88 Senate Introduced, read first time, placed on calendar
without reference SJ-11
01/28/88 Senate Read second time SJ-34
01/28/88 Senate Ordered to third reading with notice of
amendments SJ-34
02/02/88 Senate Read third time and sent to House SJ-18
02/03/88 House Introduced and read first time HJ-907
02/03/88 House Referred to Committee on Labor, Commerce and
Industry HJ-907
02/17/88 House Committee report: Favorable Labor, Commerce and
Industry HJ-1218
02/23/88 House Read second time HJ-1358
02/24/88 House Read third time and enrolled HJ-1433
03/08/88 Ratified R 371
03/14/88 Signed By Governor
03/14/88 Effective date 03/14/88
03/14/88 Act No. 355
03/22/88 Copies available
(A355, R371, S1086)
AN ACT TO AMEND TITLE 38, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO
INSURANCE, BY ADDING CHAPTER 87 SO AS TO PROVIDE FOR THE REGULATION AND TAXATION
OF RISK RETENTION GROUPS AND PURCHASING GROUPS AUTHORIZED UNDER THE FEDERAL
LIABILITY RISK RETENTION ACT OF 1986, INCLUDING THE PROVISION OF CERTAIN
PENALTIES.
Be it enacted by the General Assembly of the State of South Carolina:
Regulation, taxation; risk retention groups; purchasing groups
SECTION 1. Title 38 of the 1976 Code is amended by adding:
"CHAPTER 87
Regulation And Taxation of Risk Retention Groups And Purchasing Groups
Section 38-87-10. The purpose of this chapter is to regulate the formation and
operation of risk retention groups and purchasing groups in this State formed
pursuant to the provisions of the Federal Liability Risk Retention Act of 1986
to the extent permitted by that law.
Section 38-87-20. As used in this chapter:
(1) 'Commissioner' means the commissioner, director, or superintendent of
insurance in a state. 'Chief Insurance Commissioner' means the Chief Insurance
Commissioner of South Carolina.
(2) 'Completed operations liability' means liability arising out of the
installation, maintenance, or repair of any product at a site which is not owned
or controlled by:
(a) any person who performs that work; or
(b) any person who hires an independent contractor to perform that work; but
includes liability for activities which are completed or abandoned before the
date of the occurrence giving rise to the liability;
(3) 'Domicile', for purposes of determining the state in which a purchasing
group is domiciled, means:
(a) for a corporation, the state in which the purchasing group is incorporated;
and
(b) for an unincorporated entity, the state of its principal place of business;
(4) 'Hazardous financial condition' means that, based on its present or
reasonably anticipated financial condition, a risk retention group, although not
yet financially impaired or insolvent, is unlikely to be able:
(a) to meet obligations to policyholders with respect to known claims and
reasonably anticipated claims; or
(b) to pay other obligations in the normal course of business;
(5) 'Insurance' means primary insurance, excess insurance, reinsurance, surplus
lines insurance, and any other arrangement for shifting and distributing risk
which is determined to be insurance under the laws of this State;
(6) 'Liability':
(a) means legal liability for damages (including costs of defense, legal costs
and fees, and other claims expenses) because of injuries to other persons, damage
to their property, or other damage or loss to such other persons resulting from
or arising out of:
(i) any business (whether profit or nonprofit), trade, product, services
(including professional services), premises, or operations; or
(ii) any activity of any state or local government, or any agency or political
subdivision thereof; and
(b) does not include personal risk liability and an employer's liability with
respect to its employees other than legal liability under the Federal Employers'
Liability Act (45 U.S.C. 51 et seq.);
(7) 'Personal risk liability' means liability for damages because of injury to
any person, damage to property, or other loss or damage resulting from any
personal, familial, or household responsibilities or activities, rather than from
responsibilities or activities referred to in item (6);
(8) 'Plan of operation or a feasibility study' means an analysis which presents
the expected activities and results of a risk retention group including, at a
minimum:
(a) information sufficient to verify that its members are engaged in businesses
or activities similar or related with respect to the liability to which such
members are exposed by virtue of any related, similar, or common business, trade,
product, services, premises, or operations;
(b) for each state in which it intends to operate, the coverages, deductibles,
coverage limits, rates, and rating classification systems for each line of
insurance the group intends to offer;
(c) historical and expected loss experience of the proposed members and
national experience of similar exposures to the extent that this experience is
reasonably available;
(d) Pro forma financial statements and projections;
(e) appropriate opinions by a qualified, independent casualty actuary,
including a determination of minimum premium or participation levels required to
commence operations and to prevent a hazardous financial condition;
(f) identification of management, underwriting and claims procedures, marketing
methods, managerial oversight methods, investment policies, and reinsurance
agreements;
(g) identification of each state in which the risk retention group has
obtained, or sought to obtain, a charter and license, and a description of its
status in each such state; and
(h) such other matters as may be prescribed by the commissioner of the state
in which the risk retention group is chartered for liability insurance companies
authorized by the insurance laws of that state;
(9) 'Product liability' means liability for damages because of any personal
injury, death, emotional harm, consequential economic damage, or property damage
(including damages resulting from the loss of use of property) arising out of the
manufacture, design, importation, distribution, packaging, labeling, lease, or
sale of a product, but does not include the liability of any person for those
damages if the product involved was in the possession of such a person when the
incident giving rise to the claim occurred;
(10) 'Purchasing group' means any group which:
(a) has as one of its purposes the purchase of liability insurance on a group
basis;
(b) purchases such insurance only for its group members and only to cover their
similar or related liability exposure, as described in item ( 10)(c);
(c) is composed of members whose businesses or activities are similar or
related with respect to the liability to which members are exposed by virtue of
any related, similar, or common business, trade, product, services, premises, or
operations; and
(d) is domiciled in any state;
(11) 'Risk retention group' means any corporation or other limited liability
association:
(a) whose primary activity consists of assuming and spreading all, or any
portion, of the liability exposure of its group members;
(b) which is organized for the primary purpose of conducting the activity
described under item (11)(a);
(c) which:
(i) is chartered and licensed as a liability insurance company and authorized
to engage in the business of insurance under the laws of any state; or
(ii) before January 1, 1985, was chartered or licensed and authorized to
engage in the business of insurance under the laws of Bermuda or the Cayman
Islands and, before such date, had certified to the insurance commissioner of at
least one state that it satisfied the capitalization requirements of such state,
except that any such group must be considered to be a risk retention group only
if it has been engaged in business continuously since such date and only for the
purpose of continuing to provide insurance to cover product liability or
completed operations liability (as such terms were defined in the Product
Liability Risk Retention Act of 1981 before the date of the enactment of the
Liability Risk Retention Act of 1986);
(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;
(e) which:
(i) has as its owners only persons who comprise the membership of the risk
retention group and who are provided insurance by such group; or
(ii) has as its sole owner an organization which has as
(A) its members only persons who comprise the membership of the risk retention;
and
(B) its owners only persons who comprise the membership of the risk retention
group and who are provided insurance by such group;
(f) whose members are engaged in businesses or activities similar or related
with respect to the liability of which such members are exposed by virtue of any
related, similar, or common business, trade, product, services, premises, or
operations;
(g) whose activities do not include the provision of insurance other than:
(i) liability insurance for assuming and spreading all or any portion of the
liability of its group members; and
(ii) reinsurance with respect to the liability of any other risk retention
group (or any members of such other group) which is engaged in businesses or
activities so that such group or member meets the requirement described in item
(f) of this section for membership in the risk retention group which provides
such reinsurance; and
(h) the name of which includes the phrase 'Risk Retention Group';
(12) 'State' means any state of the United
States or the District of Columbia.
Section 38-87-30. (A) A risk retention group must, pursuant to the provisions
of this title, be chartered and licensed to write only liability insurance under
this chapter and, except as provided elsewhere in this chapter, shall comply with
all of the laws, regulations, and requirements applicable to such insurers
chartered and licensed in this State and with Section 38-87-40 to the extent such
requirements are not a limitation on laws, regulations, or requirements of this
State.
(B) Before it may offer insurance in any state, each risk retention group
chartered in this State shall submit for approval to the Chief Insurance
Commissioner of this State a plan of operation or feasibility study. The risk
retention group shall submit an appropriate revision in the event of any
subsequent material change in any item of the plan of operation or feasibility
study, within ten days of any such change. The group may not offer any additional
kinds of liability insurance, in this State or in any other state, until a
revision of such plan or study is approved by the Chief Insurance Commissioner.
(C) At the time of filing its application for charter, the risk retention group
shall provide to the Chief Insurance Commissioner in summary form the following
information: the identity of the initial members of the group, the identity of
those individuals who organized the group or who will provide administrative
services or otherwise influence or control the activities of the group, the
amount and nature of initial capitalization, the coverages to be afforded, and
the states in which the group intends to operate. Upon receipt of this
information, the Chief Insurance Commissioner may forward such information to the
National Association of Insurance Commissioners. Providing notification to the
National Association of Insurance Commissioners is in addition to, and is not
sufficient to satisfy, the requirements of Section 38-87-40 or any other
provision of this chapter.
Section 38-87-40. Risk retention groups chartered and licensed in states other
than this State and seeking to do business as a risk retention group in this
State shall comply with the laws of this State as follows:
(1) Notice of Operations and Designation of Commissioner as Agent.
(a) Before offering insurance in this State, a risk retention group shall
submit to the Chief Insurance Commissioner:
(i) a statement identifying the state or states in which the risk retention
group is chartered and licensed as a liability insurance company, charter date,
its principal place of business, and such other information, including
information on its membership, as the Chief Insurance Commissioner of this State
may require to verify that the risk retention group is qualified under Section
38-87-20(11);
(ii) a copy of its plan of operations or feasibility study and revisions of
such plan or study submitted to the state in which the risk retention group is
chartered and licensed; however, the provision relating to the submission of a
plan of operation or feasibility study does not apply with respect to any line
or classification of liability insurance which:
(A) was defined in the Product Liability Risk Retention Act of 1981 before
October 27, 1986; and
(B) was offered before such date by any risk retention group which had been
chartered and operating for not less than three years before such date.
(b) The risk retention group shall submit a copy of any revision to its plan
of operation or feasibility study required by Section 38-87-30(B) at the same
time that such revision is submitted to the commissioner of its chartering state.
(c) A statement of registration and a notice designating the Chief Insurance
Commissioner as agent for the purpose of receiving service of legal documents or
process must be submitted on such forms as the Chief Insurance Commissioner may
prescribe or approve.
(d) Annual license fees, equal to the license fees required of an admitted
liability insurer licensed to transact business in this State, must be paid in
this State.
(2) Financial Condition. Any risk retention group doing business in this State
shall submit to the Chief Insurance Commissioner:
(a) a copy of the group's financial statement submitted to the state in which
the risk retention group is chartered and licensed which must be certified by an
independent public accountant and shall contain a statement of opinion on loss
and loss adjustment expense reserves made by a member of the American Academy of
Actuaries or a loss reserve specialist qualified under such criteria as the Chief
Insurance Commissioner may prescribe or approve;
(b) a copy of each examination of the risk retention group as certified by the
commissioner of its chartering state or other public official conducting the
examination;
(c) upon request by the Chief Insurance Commissioner, a copy of any information
or document pertaining to any outside audit performed with respect to the risk
retention group;
(d) such information as may be required to verify its continuing qualification
as a risk retention group under Section 38-87-20(11).
(3) Taxation.
(a) Each risk retention group is liable for the payment of premium taxes and
taxes on premiums of direct business for risks resident or located within this
State and shall report to the Chief Insurance Commissioner the net premiums
written for risks resident or located within this State. Such risk retention
group is subJect to taxation, including any applicable fines and penalties
related thereto, on the same basis as a foreign admitted insurer.
(b) To the extent licensed agents or brokers are utilized pursuant to Section
38-87-120, they shall report to the Chief Insurance Commissioner the premiums for
direct business for risks resident or located within this State which such
licensees have placed with or on behalf of a risk retention group not chartered
in this State.
(c) To the extent that insurance agents or brokers are utilized pursuant to
Section 38-87-120, such agent or broker shall keep a complete and separate record
of all policies procured from each such risk retention group, which record must
be open to examination by the Chief Insurance Commissioner or his representative
on demand. These records shall, for each policy and each kind of insurance
provided thereunder, include the following:
(i) the limit of liability;
(ii) the time period covered;
(iii) the effective date;
(iv) the name of the risk retention group which issued the policy;
(v) the gross premium charged;
(vi) the amount of return premiums, if any;
(vii) such additional information as the Chief Insurance Commissioner may
require.
(4) Compliance with Claims Settlement Practices Laws. Every risk retention
group, its agents, and its representatives shall comply with the claims
settlement practices laws of this State, including, but not limited to, Section
38-57-70, Chapter 59 of Title 38, and such other provisions relative to claims
settlement practices required by law.
(5) Deceptive, False, or Fraudulent Practices. Every risk retention group shall
comply with the laws of this State regarding deceptive, false, or fraudulent acts
or practices, including, but not limited to, Chapter 57 of this title and such
other provisions relative to deceptive, false, or fraudulent practices required
by law.
(6) Examination Regarding Financial Condition. Any risk retention group shall
submit to an examination by the Chief Insurance Commissioner 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 Chief Insurance
Commissioner of this State. Any such examination must be coordinated to avoid
unjustified repetition and must be conducted in an expeditious manner and in
accordance with the standards and procedures applicable to examinations of
admitted insurers.
(7) Notice to Purchasers. Every application form for insurance from a risk
retention group, and every policy (on its front and declaration pages) issued by
a risk retention group, must contain in ten point type the following notice:
NOTICE
This policy is issued by your risk retention group. Your risk retention group
may not be subject to all of the insurance laws and regulations of your state.
State insurance insolvency guaranty funds are not available for your risk
retention group.
(8) Prohibited Acts Regarding Solicitation or Sale. The following acts by a
risk retention group are prohibited:
(a) the solicitation or sale of insurance by a risk retention group to any
person who is not eligible for membership in the group;
(b) the solicitation or sale of insurance by, or operation of, a risk retention
group that is in hazardous financial condition or financially impaired.
(9) Prohibition on Ownership by an Insurance Company. No risk retention group
is allowed to do business in this State if an insurance company is directly or
indirectly a member or owner of such risk retention group, other than in the case
of a risk retention group all of whose members are insurance companies.
(10) Prohibited Coverage. The terms of any insurance policy issued by any risk
retention group may not provide, or be construed to provide, coverage prohibited
generally by statute of this State or declared unlawful by the Supreme Court of
South Carolina.
(11) Delinquency Proceedings. A risk retention group not chartered in this
State and doing business in this State shall comply with a lawful order issued
in a voluntary dissolution proceeding or in a delinquency proceeding commenced
by a state insurance commissioner if there has been a finding Or financial
impairment after an examination under Section 38-87-40(6). (12) Penalties. A
risk retention group that violates any provision of this chapter is subject to
fines and any other penalties, including revocation of its right to do business
in this State, applicable to licensed insurers generally.
(13) Operation Prior to Enactment of this Chapter. In addition to complying
with the requirements of this section, any risk retention group operating in this
State prior to enactment of this chapter shall comply within thirty days after
the effective date of this chapter with the provisions of item (1)(a) of this
section.
Section 38-87-50. (A) No risk retention group is required or permitted to join
or contribute financially to any insurance insolvency guaranty fund, or similar
mechanism, in this State; nor may any risk retention group, or its insureds or
claimants against its insureds, receive any benefit from any such fund for claims
arising under the insurance policies issued by such risk retention group.
(B) When a purchasing group obtains insurance covering its members' risks from
an approved surplus lines insurer not admitted in this State or a risk retention
group, no such risks, wherever resident or located, may be covered by any
insurance guaranty fund or similar mechanism in this State.
(C) When a purchasing group obtains insurance covering its members' risks from
an authorized insurer, only risks resident or located in this State may be
covered by the South Carolina Property and Casualty Insurance Guaranty
association created under Chapter 31 of this title.
(D) The Chief Insurance Commissioner may require a risk retention group to
participate in any mechanism established or authorized under the law of this
State for the equitable apportionment among insurers of liability insurance
losses and expenses incurred on policies written through such mechanism, and such
risk retention group shall submit sufficient information to the Chief Insurance
Commissioner to enable him to apportion on a nondiscriminatory basis the risk
retention group's proportionate share of such losses and expenses.
Section 38-87-60. A policy of insurance issued to a risk retention group or any
member of that group is not required to be countersigned as otherwise provided
in Section 38-43-60.
Section 38-87-70. A purchasing group, including its insurer or insurers, is
subJect to all applicable laws of this State, except that a purchasing group,
including its insurer or insurers, is exempt, in regard to liability insurance
for the purchasing group, from any law that would:
(1) prohibit the establishment of a purchasing group;
(2) make it unlawful for an insurer to provide or offer to provide insurance
on a basis providing, to a purchasing group or its members, advantages based on
their loss and expense experience not afforded to other persons with respect to
rates, policy forms, coverages, or other matters;
(3) prohibit a purchasing group or its members from purchasing insurance on a
group basis described in item (2) of this section;
(4) prohibit 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) require that a purchasing group must have a minimum number of members,
common ownership or affiliation, or certain legal form;
(6) require that a certain percentage of a purchasing group must obtain
insurance on a group basis;
(7) otherwise discriminate against a purchasing group or any of its members;
or
(8) require that any insurance policy issued to a purchasing group or any of
its members be countersigned by an insurance agent or broker residing in this
State.
Section 38-87-80. (A) A purchasing group prior to doing business in this State
shall furnish notice to the Chief Insurance Commissioner, on forms prescribed or
approved by him, which shall:
(1) identify the state in which the group is domiciled;
(2) identify all other states in which the group intends to do business;
(3) specify the lines and classifications of liability insurance which the
purchasing group intends to purchase;
(4) identify the insurance company from which the group intends to purchase its
insurance and the domicile of such company;
(5) specify the method by which, and the person, if any, through whom insurance
will be offered to its members whose risks are resident or located in this State;
(6) identify the principal place of business of the group;
(7) provide other information as may be required by the Chief Insurance
Commissioner to verify that the purchasing group is qualified under Section
38-87-20(10).
(B) A purchasing group shall notify, within ten days, the Chief Insurance
Commissioner of any changes in any of the items set forth in Subsection (A) of
this section.
(C) The purchasing group shall register with the Chief Insurance Commissioner
and designate him as its agent solely for the purpose of receiving service of
legal documents or process, except that such requirements do not apply in the
case of a purchasing group which satisfies the Chief Insurance Commissioner that
it only purchases insurance that was authorized under the Federal Products
Liability Risk Retention Act of 1981, and:
(1) that in any state of the United States (a) it was domiciled before April
1, 1986; and
(b) it is domiciled on and after October 27, 1986;
(2) that
(a) before October 27, 1986, it purchased insurance from an insurance carrier
licensed in any state; and
(b) since October 27, 1986, it purchased its insurance from an insurance
carrier licensed in any state; or
(3) that it was a purchasing group under the requirements of the Product
Liability Risk Retention Act of 1981 before October 27, 1986.
(D) Each purchasing group that is required to give notice pursuant to
Subsection (A) of this section also shall furnish such information as may be
required by the Chief Insurance Commissioner to:
(1) verify that the entity qualifies as a purchasing group;
(2) determine where the purchasing group is located;
(3) determine appropriate tax treatment.
Section 38-87-90. (A) A purchasing group which obtains liability insurance from
an approved surplus lines insurer not admitted in this State or a risk retention
group shall inform each of the members of the group which have a risk resident
or located in this State that the risk is not protected by an insurance
insolvency guaranty fund in this State and that such risk retention group or such
insurer may not be subject to all insurance laws and regulations of this State.
(P) No purchasing group may purchase insurance providing for a deductible or
self-insured retention applicable to the group as a whole; however, coverage may
provide for a deductible or self-insured retention applicable to individual
members.
(C) Purchases of insurance by purchasing groups are subject to the same
standards regarding aggregate limits which are applicable to all purchases of
group insurance.
Section 38-87-100. Premium taxes and other taxes on premiums paid for coverage
of risks resident or located in this State by a purchasing group or any members
of the purchasing group are imposed and must be paid as follows:
(1) If the insurer is an admitted insurer, taxes are imposed on the insurer at
the same rate and in the same manner and subject to the same procedures,
interest, and penalties as that applicable to premium taxes and other taxes
imposed on other admitted liability insurers relative to coverage of risks
resident or located in this States
(2) If the insurer is an approved nonadmitted surplus lines insurer, taxes are
imposed on the licensed broker who effected coverage on risks resident or located
in this State at the same rate and in the same manner and subject to the same
procedures, interest, and penalties as that applicable to taxes imposed on other
licensed brokers effecting coverage with approved nonadmitted surplus lines
insurers on risks resident or located in this State
Section 38-87-110. (A) The Chief Insurance Commissioner is authorized to use
any power established under this title to enforce the insurance laws of this
State not specifically preempted by the Liability Risk Retention Act of 1986,
including, but without limitation, the Chief Insurance Commissioner's
administrative authority to investigate, issue subpoenas, conduct depositions and
hearings, issue orders, impose monetary penalties, and seek injunctive relief.
With regard to any investigation, administrative proceedings, or litigation, the
Chief Insurance Commissioner may rely on the procedural laws of this State.
(B) Whenever the Chief Insurance Commissioner determines that any person, risk
retention group, purchasing group, or insurer of a purchasing group has violated,
is violating, or is about to violate any provision of this chapter or any other
insurance law of this State applicable to such person or entity, or has failed
to comply with a lawful order of his, he may, in addition to any other lawful
remedies or penalties, cause a complaint to be filed in the Court of Common Pleas
for Richland County to enjoin and restrain such person, risk retention group,
purchasing group, or insurer from engaging in such violation, or to compel
compliance with such order of the Chief Insurance Commissioner. The court has
jurisdiction of the proceeding and has the power to enter a judgement and order
for injunctive or other relief. In any action by the Chief Insurance Commissioner
under this subsection, service of process must be made upon the Secretary of
State, who shall forward the order, pleadings, or other process to the person,
risk retention group, purchasing group, or insurer in accordance with the
procedures specified in Section 38-25-510. Nothing herein may be construed to
limit or abridge the authority of the Chief Insurance Commissioner to seek
injunctive relief in any district court of the United States as provided in
Section 38-87-130.
Section 38-87-120. (A) Risk retention group. No person may act or aid in any
manner in soliciting, negotiating, or procuring liability insurance in this State
from a risk retention group unless such person is licensed as an insurance agent
for the risk retention group in accordance with Chapter 43 of this title or is
licensed as a broker in accordance with Chapter 45 of this title. (B)
Purchasing groups. (1) No person may act or aid in any manner in soliciting,
negotiating, or procuring liability insurance in this State for a purchasing
group from an authorized insurer or a risk retention group chartered in a state
unless such person is licensed as an insurance agent for the insurer or risk
retention group in accordance with Chapter 43 of this title or is licensed as a
broker in accordance with Chapter 45 of this title.
(2) No person may act or aid in any manner in soliciting, negotiating, or
procuring liability insurance coverage in this State for any member of a
purchasing group under a purchasing group's policy unless such person is licensed
as an insurance agent for the insurer in accordance with Chapter 43 of this title
or is licensed as a broker in accordance with Chapter 45 of this title. (3)
No person may act or aid in any manner in soliciting, negotiating, or procuring
liability insurance from an approved nonadmitted surplus lines insurer on behalf
of a purchasing group located in this State unless such person is licensed as a
broker in accordance with Chapter 45 of this title.
(C) For purposes of acting as an agent or broker for a risk retention group or
purchasing group pursuant to Subsections (A) and (B) of this section, the
requirement of residence in this State does not apply.
(D) Every person licensed as an agent or broker as required in this section,
on business placed with risk retention groups or written through a purchasing
group, shall inform each prospective insured of the provisions of the notice
required by Section 38-87-40(7) in the case of a risk retention group and Section
38-87-90(A) in the case of a purchasing group.
Section 38-87-130. An order issued by any district court of the United States
enjoining a risk retention group from soliciting or selling insurance or
operating in any state, or in all states or in any territory or possession of the
United States, upon a finding that such a group is in hazardous financial or
financially impaired condition is enforceable in the courts of this State.
Section 38-87-140. The Chief Insurance Commissioner may promulgate regulations
he considers necessary to carry out the provisions of this chapter."
Purchasing groups; furnish notice and information
SECTION 2. Any purchasing group which was doing business in this State prior to
the enactment of Chapter 87 shall furnish, within thirty days after its effective
date, notice to the Chief Insurance Commissioner pursuant to the provisions of
Subsection (A) and furnish such information as may be required pursuant to
Subsections (B) and (C) of Section 38-87-80 Time effective
SECTION 3. This act takes effect upon approval by the Governor. |