Page:United States Statutes at Large Volume 100 Part 4.djvu/246

 100 STAT. 3174

PUBLIC LAW 99-563—OCT. 27, 1986

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"(H) comply with an injunction issued by a court of competent jurisdiction, upon a petition by the State insurance commissioner alleging that the group is in hazardous financial condition or is financially impaired; and "(I) provide the following notice, in 10-point type, in any insurance policy issued by such group:


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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.' ". SEC. 6. ADDITIONAL REQUIREMENTS RELATING TO PURCHASING GROUPS.

Post, p. 3175.

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Section 4 (15 U.S.C. 3903) is amended by adding at the end the following new subsections: "(d)(1) A purchasing group which intends to do business in any State shall furnish notice of such intention to the insurance commissioner of such State. Such notice— "(A) shall identify the State in which such group is domiciled; "(B) shall specify the lines and classifications of liability insurance which the purchasing group intends to purchase; "(C) shall identify the insurance company from which the group intends to purchase insurance and the domicile of such company; and "(D) shall identify the principal place of business of the group. "(2) Such purchasing group shall notify the commissioner of any such State as to any subsequent changes in any of the items provided in such notice. "(e) A purchasing group shall register with and designate the State insurance commissioner of each State in which it does business as its agent solely for the purpose of receiving service of legal documents or process, except that such requirement shall not apply in the case of a purchasing group— "(1) which— "(A) was domiciled before April 1, 1986; and "(B) is domiciled on and after the date of the enactment of this Act; in any State of the United States; "(2) which— ' ' "(A) before the date of the enactment of this Act, pur!.'^ \ chased insurance from an insurance carrier licensed in any State; and "(B) since such date of enactment, purchases its insurance from an insurance carrier licensed in any State; "(3) which was a purchasing group under the requirements of this Act before the date of the enactment of the Risk Retention Amendments of 1986; and "(4) as long as such group does not purchase insurance that was not authorized for purposes of an exemption under this Act as in effect before the date of the enactment of the Risk Retention Amendments of 1986. "(f) A purchasing group may not purchase insurance from a risk retention group that is not chartered in a State or from an insurer not admitted in the State in which the purchasing group is located, unless the purchase is effected through a licensed agent or broker

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