Page:United States Statutes at Large Volume 100 Part 4.djvu/248

 100 STAT. 3176

15 USC 3902.

PUBLIC LAW 99-563—OCT. 27, 1986

the policy form or coverage requirements of any State motor vehicle no-fault or motor vehicle financial responsibility insurance law. "(b) The exemptions provided under this Act shall apply only to the provision of liability insurance by a risk retention group or the purchase of liability insurance by a purchasing group, and nothing in this Act shall be construed to permit the provision or purchase of any other line of insurance by any such group. "(c) The terms of any insurance policy provided by a risk retention group or purchased by a purchasing group shall not provide or be construed to provide insurance policy coverage prohibited generally by State statute or declared unlawful by the highest court of the State whose law applies to such policy. "(d) Subject to the provisions of section 3(a)(4) relating to discrimination, nothing in this Act shall be construed to preempt the authority of a State to specify acceptable means of demonstrating financial responsibility where the State has required a demonstration of financial responsibility as a condition for obtaining a license or permit to undertake specified activities. Such means may include or exclude insurance coverage obtained from an admitted insurance company, an excess lines company, a risk retention group, or any other source regardless of whether coverage is obtained directly from an insurance company or through a broker, agent, purchasing group, or any other person.". SEC. 9. INJUNCTIVE POWERS OF FEDERAL COURTS.

The Act, as amended by section 8(c) of this Act, is further amended by adding at the end the following new section: "INJUNCTIVE ORDERS ISSUED BY UNITED STATES DISTRICT COURTS

15 USC 3906.

"SEC. 7. Any district court of the United States may issue an order 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 of such court that such group is in hazardous financial condition. Such order shall be binding on such group, its officers, agents, and employees, and on any other person acting in active concert with any such officer, agent, or employee, if such other person has actual notice of such order.". SEC, 10. OVERSIGHT OF IMPLEMENTATION; REPORT TO CONGRESS.

15 USC 3901 note.

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(a) IN GENERAL.—(1) Not later than September 1, 1987, and not later than September 1, 1989, the Secretary of Commerce shall submit reports to the Congress concerning implementation of this Act. (2) Such report shall be based on— (A) the Secretary's consultation with State insurance commissioners, risk retention groups, purcheising groups, and other interested parties; and (B) the Secretary's analysis of other information available to the Secretary. (b) CONTENTS OF THE REPORT.—The report shall describe the Secretary's views concerning— (1) the contribution of this Act toward resolution of problems ^'^ relating to the unavailability and unaffordability of liability insurance; ^ iv-5»

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