Page:United States Statutes at Large Volume 100 Part 2.djvu/615

 PUBLIC LAW 99-499—OCT. 17, 1986

100 STAT. 1717

"SEC. 403. RISK RETENTION GROUPS.

42 USC 9673.

"(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) 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.—Subsec-

tion (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. ^ - ^ (., ^v "(B) Pay, on a nondiscriminatory basis, applicable pre,; mium and other taxes which are levied on admitted insurer ers and surplus line insurers, brokers, or policyholders J under the laws of the State. .jr "(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 insur^ ^ ance 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 ^^3" group to the commissioner of the chartering or licensing B lie 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; ai

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"(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.

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