CHAPTER 58-6A

RISK RETENTION GROUPS

58-6A-1    Definition of terms.

58-6A-2    Charter and license of risk retention group--Approval of plan of operation or feasibility study--Revision of plan or study--Notice to National Association of Insurance Commissioners.

58-6A-3    Information submitted to director.

58-6A-3.1    Majority of risk retention group directors to be independent--Board determinations as to material relationship.

58-6A-3.2    Criteria of material relationship.

58-6A-3.3    Material service provider contracts.

58-6A-3.4    Notice to director of intent to enter into service provider contract meeting criteria of material relationship.

58-6A-3.5    Written policy in plan of operation.

58-6A-3.6    Members of audit committee.

58-6A-3.7    Purpose of audit committee.

58-6A-3.8    Waiver of audit committee requirement.

58-6A-3.9    Governance standards.

58-6A-3.10    Code of business conduct and ethics.

58-6A-3.11    Notice to director of noncompliance with standards.

58-6A-3.12    Application of §§ 58-6A-1 to 58-6A-3.11.

58-6A-4    Financial information submitted to director.

58-6A-5    Taxation of premiums--Payment by insurance producers or brokers--Payment by risk retention group--Report of premiums.

58-6A-5.1    Rate of taxation on premiums--Interest, fines and penalties--Payment.

58-6A-6    Compliance with Unfair Trade Practices Act.

58-6A-7    Compliance with laws regarding deceptive, false, or fraudulent acts or practices--Injunction.

58-6A-8    Examination by director.

58-6A-9    Notice contained on policy--Contents.

58-6A-10    Prohibited acts by risk retention group.

58-6A-11    Insurance company as member or owner.

58-6A-12    Compliance with voluntary dissolution or delinquency order by group not chartered if financially impaired.

58-6A-13    Financial contribution to or benefit from insurance insolvency guaranty fund prohibited.

58-6A-14    Countersignature on policy not required.

58-6A-15    Prohibited insurance coverage.

58-6A-16    58-6A-16. Repealed by SL 1988, ch 392, § 3

58-6A-16.1    Exemptions for purchasing group and insurer in regard to liability insurance--Subject to other laws.

58-6A-17    Notice to director--Contents.

58-6A-17.1    Notice to director of changes.

58-6A-17.2    Information required by director--Time for giving notice and information.

58-6A-18    Designation of director as agent for purchasing group--Exceptions.

58-6A-19    58-6A-19. Repealed by SL 1988, ch 392, § 8

58-6A-19.1    Purchase from risk retention group not chartered or insurer not admitted in state prohibited--Exception.

58-6A-19.2    Notice of unprotected risk when liability insurance obtained from insurer not admitted in this state or risk retention group.

58-6A-19.3    Purchase of insurance providing for deductible or self-induced retention applicable to whole group prohibited--Application to individuals allowed--Aggregate limits standards.

58-6A-19.4    Insurance producer or broker license required for purchasing liability insurance from risk retention group.

58-6A-19.5    Insurance producer or broker license required to solicit liability insurance for purchasing group from insurer or risk retention group.

58-6A-19.6    Insurance producer or broker license required to solicit liability insurance for member of purchasing group.

58-6A-19.7    Surplus lines producer or excess line producer license required to solicit liability insurance from unauthorized insurer for purchasing group.

58-6A-20    Director's use of enforcement powers--Injunctive authority.

58-6A-21    Penalty for violation.

58-6A-22    Broker license--Waiver of residency requirements.

58-6A-23    Enforcement of injunction against risk retention group in hazardous financial condition.

58-6A-24    Promulgation of rules.

58-6A-1. Definition of terms.

Terms used in this chapter mean:

(1)    "Board of directors" or "board," the governing body of the risk retention group as elected by the shareholders or members to establish policy, elect or appoint officers and committees, and make other governing decisions;

(2)    "Completed operations liability," any 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 installation, maintenance, or repair of any product; or

(b)    Any person who hires an independent contractor to perform installation, maintenance, or repair of any product; but includes liability for activities which are completed or abandoned before the date of the occurrence giving rise to the liability;

(3)    "Director," the insurance director of South Dakota or the commissioner, director, or superintendent of insurance in any other state;

(4)    "Director of the risk retention group," an individual designated in the articles of the risk retention group, or designated, elected, or appointed by any other manner, name, or title to act as a director;

(5)    "Domicile," for purposes of determining the state in which a purchasing group is domiciled:

(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;

(6)    "Hazardous financial condition," based on its present or reasonably anticipated financial condition, a risk retention group, although not yet financially impaired or insolvent, which 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;

(7)    "Insurance," 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;

(8)    "Liability," legal liability for damages, including costs of defense, legal costs and fees, and other claims expenses because of injury to a person, damage to the person's property, or other damage or loss to any other person resulting from or arising out of any business, whether profit or nonprofit, trade, product, services, including professional services, premises or operations. It 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.);

(9)    "Personal risk liability," liability for damages because of injury to any person, damage to property, or other loss or damage resulting from any personal, family or household responsibilities or activities, rather than from responsibilities or activities referred to in subdivision (8);

(10)    "Plan of operation or a feasibility study," an analysis which presents the expected activities and results of a risk retention group including, at a minimum:

(a)    For each state in which the risk retention group intends to operate, the coverages, deductibles, coverage limits, rates and rating classification systems for each line of insurance the group intends to offer;

(b)    Historical and expected loss experience of the proposed members and national experience of similar exposures to the extent that this experience is reasonably available;

(c)    Pro forma financial statements and projections;

(d)    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;

(e)    Identification of management, underwriting procedures, managerial oversight methods, investment policies, and reinsurance agreements;

(f)    Information sufficient to verify that the risk retention group's members are engaged in businesses or activities similar or related with respect to the liability to which the members are exposed by virtue of any related, similar, or common business, trade, product, services, premises, or operations;

(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 state; and

(h)    Other matters as may be prescribed by the director, supervisor, or commissioner of the state in which the risk retention group is chartered for liability insurance companies authorized by the insurance laws of that state;

(11)    "Product liability," 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;

(12)    "Purchasing group," 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 subsection (c) herein;

(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;

(13)    "Risk retention group," any corporation or other limited liability association formed under the laws of any state, Bermuda, or the Cayman Islands:

(a)    Whose primary activity consists of assuming and spreading all, or any portion, of the liability exposure of the group members;

(b)    Which is organized for the primary purpose of conducting the activity described under subsection (a);

(c)    Which 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 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 director of at least one state that it satisfied the capitalization requirements of such state, except that any such group shall 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;

(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 has as its members only persons who have an ownership interest in the group and which has as its owners only persons who are members who are provided insurance by the risk retention group; or has as its sole member and sole owner an organization which is owned by persons who are provided insurance by the risk retention 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 liability insurance for assuming and spreading all or any portion of the liability of its group members; and 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 subsection (f) from membership in the risk retention group which provides such reinsurance; and

(h)    The name of which includes the term, risk retention group;

(14)    "Service provider," any auditor, accountant, actuary, investment advisor, lawyer, managing general underwriter, or any other party responsible for underwriting, determination of rates, collection of premiums, adjusting and settling a claim, or the preparation of a financial statement. The term, lawyer, in this definition does not include defense counsel retained by the risk retention group to defend claims, unless the amount of fees paid to the lawyer is material as referenced in § 58-6A-3.2;

(15)    "State," any state of the United States or the District of Columbia.

Source: SL 1987, ch 372, § 1; SL 2016, ch 232, § 2.

58-6A-2. Charter and license of risk retention group--Approval of plan of operation or feasibility study--Revision of plan or study--Notice to National Association of Insurance Commissioners.

Any risk retention group seeking to be chartered in this state shall be chartered and licensed as a liability insurance company authorized by the insurance laws of this state and, except as provided in this chapter, shall comply with all of the laws, rules, and requirements applicable to such insurers chartered and licensed in this state. Before it may offer insurance in any state, each risk retention group shall also submit for approval to the director of insurance of this state a plan of operation or a feasibility study and revisions of such plan or study if the group intends to offer any additional lines of liability insurance. If any subsequent material change is made to the plan of operation or feasibility study, the risk retention group shall submit an appropriate revision to the director within ten days of any change. No group may offer any additional lines of liability insurance in this state or any other state until a revision of the plan or study is approved by the director.

When filing an application for charter, the risk retention group shall provide to the director a summary of information, including the name of the risk retention group, the identity of the initial members of the group, the identity of those persons 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, the director shall forward the information to the National Association of Insurance Commissioners. Providing notification to the National Association of Insurance Commissioners is in addition, and is not sufficient, to satisfy the requirements of this chapter.

Source: SL 1987, ch 372, § 2; SL 2016, ch 232, § 14.

58-6A-3. Information submitted to director.

Before offering insurance in this state, a risk retention group not chartered in this state shall submit to the director:

(1)    A statement identifying the states in which the risk retention group is chartered and licensed as a liability insurance company, date of chartering, its principal place of business, and other information, including information on its membership, as the director of this state may require to verify that the risk retention group is qualified under this chapter;

(2)    A copy of the group's plan of operations or a feasibility study and revisions of the plan or study submitted to its state of domicile. However, the provision relating to the submission of a plan of operation or a feasibility study does not apply with respect to any line or classification of liability insurance which was defined in the Product Liability Risk Retention Act of 1981, before October 27, 1986, and 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;

(3)    A statement of registration which designates the director as the group's agent for the purpose of receiving service of legal documents or process; and

(4)    A copy of any material revision to the group's plan of operation or feasibility study within thirty days of the date of the approval of the revision by the director of the group's chartering state, or if no such approval is required, within thirty days of filing.

Source: SL 1987, ch 372, § 3; SL 2016, ch 232, § 15.

58-6A-3.1. Majority of risk retention group directors to be independent--Board determinations as to material relationship.

The board of directors of the risk retention group shall have a majority of independent directors. If the risk retention group is a reciprocal, then the attorney-in-fact shall adhere to the same standards regarding independence of operation and governance as imposed on the risk retention group's board of directors or subscriber's advisory committee under these standards. In addition, to the extent permissible under state law, a service provider of a reciprocal risk retention group shall contract with the risk retention group and not the attorney-in-fact.

No director of the risk retention group qualifies as independent unless the board of directors affirmatively determines that the director of the risk retention group has no material relationship as described in § 58-6A-3.2 with the risk retention group. Each risk retention group shall disclose these determinations to the group's domestic regulator, at least annually. For the purposes of this section, any person that is a direct or indirect owner of or subscriber in the risk retention group or is an officer, director of the risk retention group, or employee of such an owner and insured, unless some other position of the officer, director of the risk retention group, or an employee constitutes a material relationship, as contemplated by section 3901(a)(4)(E)(ii) of the Liability Risk Retention Act in effect as of January 1, 2016, is considered to be independent.

Source: SL 2016, ch 232, § 3.

58-6A-3.2. Criteria of material relationship.

A material relationship includes:

(1)    The receipt in any one twelve-month period of compensation or payment of any other item of value greater than or equal to five percent of the risk retention group's gross written premium for the twelve-month period or two percent of the risk retention group's surplus, whichever is greater, as measured at the end of any fiscal quarter falling in the twelve-month period by a person with the risk retention group or:

(a)    The person's immediate family member;

(b)    A business with which the person is affiliated from the risk retention group; or

(c)    A consultant or service provider to the risk retention group.

A person with the risk retention group or an immediate family member of the person is not independent until one year after the person's compensation from the risk retention group falls below the threshold;

(2)    A relationship with an auditor where a director of the risk retention group or an immediate family member of a director of the risk retention group who is affiliated with or employed in a professional capacity by a present or former internal or external auditor of the risk retention group is not independent until one year after the end of the affiliation, employment, or auditing relationship; and

(3)    A relationship with a related entity where a director of the risk retention group or an immediate family member of a director of the risk retention group who is employed as an executive officer of another company where any of the risk retention group's present executives serve on that other company's board of directors is not independent until one year after the end of the service or the employment relationship.

Source: SL 2016, ch 232, § 4.

58-6A-3.3. Material service provider contracts.

The term of any material service provider contract with the risk retention group may not exceed five years. Any material service provider contract, or its renewal, requires the approval of the majority of the risk retention group's independent directors. The risk retention group's board of directors shall have right to terminate any service provider, audit, or actuarial contracts at any time for cause after providing adequate notice as defined in the contract. The service provider contract is deemed material if the amount to be paid for the contract is greater than or equal to five percent of the risk retention group's annual gross written premium or two percent of its surplus, whichever is greater.

Source: SL 2016, ch 232, § 5.

58-6A-3.4. Notice to director of intent to enter into service provider contract meeting criteria of material relationship.

No service provider contract meeting the criteria of material relationship contained in § 58-6A-3.2 may be entered into unless the risk retention group has notified the director in writing of the risk retention group's intention to enter into the contract at least thirty days before entering into the transaction and the director has not disapproved the contract within that period.

Source: SL 2016, ch 232, § 6.

58-6A-3.5. Written policy in plan of operation.

The risk retention group's board of directors shall adopt a written policy in the plan of operation as approved by the board that requires the board to:

(1)    Assure that all owners and insureds of the risk retention group receive evidence of ownership interest;

(2)    Develop a set of governance standards applicable to the risk retention group;

(3)    Oversee the evaluation of the risk retention group's management including the performance of the managing general underwriter or any other party responsible for underwriting, determination of rates, collection of premiums, adjusting or settling a claim, or the preparation of a financial statement;

(4)    Review and approve the amount to be paid for each material service provider; and

(5)    Review and approve, at least annually:

(a)    The risk retention group's goals and objectives relevant to the compensation of officers and service providers;

(b)    The officers' and service providers' performance in light of those goals and objectives; and

(c)    The continued engagement of the officers and material service providers.

Source: SL 2016, ch 232, § 7.

58-6A-3.6. Members of audit committee.

The risk retention group shall have an audit committee composed of at least three independent board members as defined in §§ 58-6A-3.1 and 58-6A-3.2. A nonindependent board member may participate in the activities of the audit committee, if invited by the committee, but cannot be a member of the audit committee.

Source: SL 2016, ch 232, § 8.

58-6A-3.7. Purpose of audit committee.

The audit committee of the risk retention group shall have a written charter that defines the committee's purpose, which, at a minimum, shall:

(1)    Assist board oversight of the integrity of financial statements, the compliance with legal and regulatory requirements, and the qualifications, independence, and performance of the independent auditor and actuary;

(2)    Discuss the annual audited financial statements and quarterly financial statements with management;

(3)    Discuss the annual audited financial statements with the group's independent auditor and, if advisable, discuss the group's quarterly financial statements with the group's independent auditor;

(4)    Discuss policies with respect to risk assessment and risk management;

(5)    Meet separately and periodically, either directly or through a designated representative of the committee, with management and the independent auditor;

(6)    Review with the independent auditor any audit problems or difficulties and management's response;

(7)    Set clear hiring policies of the risk retention group as to the hiring of employees or former employees of the independent auditor;

(8)    Require the external auditor to rotate the lead or coordinating audit partner having primary responsibility for the risk retention group's audit as well as the audit partner responsible for reviewing that audit so that neither individual performs audit services for more than five consecutive fiscal years; and

(9)    Report regularly to the board of directors.

Source: SL 2016, ch 232, § 9.

58-6A-3.8. Waiver of audit committee requirement.

The domestic regulator may waive the requirement to establish an audit committee composed of independent board members if the risk retention group is able to demonstrate to the domestic regulator that it is impracticable to do so and the risk retention group's board of directors itself is otherwise able to accomplish the purposes of an audit committee, as described in § 58-6A-3.7.

Source: SL 2016, ch 232, § 10.

58-6A-3.9. Governance standards.

The board of directors shall adopt and disclose governance standards and make the information available electronically through the risk retention group's website or by other means. The risk retention group shall provide the governance standards to members or insureds on request. The adopted governance standards shall include the following:

(1)    Concerning the directors of the risk retention group:

(a)    A process by which the directors are elected by the owners or insureds;

(b)    Qualification standards;

(c)    Responsibilities;

(d)    Access to management and, as necessary and appropriate, independent advisors;

(e)    Compensation; and

(f)    Orientation and continuing education;

(2)    The policies and procedures that are followed for management succession; and

(3)    The policies and procedures that are followed for annual performance evaluation of the board.

Source: SL 2016, ch 232, § 11.

58-6A-3.10. Code of business conduct and ethics.

The board of directors shall adopt and disclose a code of business conduct and ethics for directors, officers, and employees. Each director, officer, and employee shall promptly disclose to the board of directors any waivers of the code. The code of business conduct and ethics shall include the following topics:

(1)    Conflicts of interest;

(2)    Matters covered under the corporate opportunities doctrine under the state of domicile;

(3)    Confidentiality;

(4)    Fair dealing;

(5)    Protection and proper use of risk retention group assets;

(6)    Compliance with all applicable laws, rules, and regulations; and

(7)    Requiring the reporting of any illegal or unethical behavior which affects the operation of the risk retention group.

Source: SL 2016, ch 232, § 12.

58-6A-3.11. Notice to director of noncompliance with standards.

If the manager, president, or chief executive officer of the risk retention group becomes aware of any material noncompliance with any standards described in §§ 58-6A-3.1 to 58-6A-3.11, inclusive, the manager, president, or officer shall promptly notify the domestic regulator in writing.

Source: SL 2016, ch 232, § 13.

58-6A-3.12. Application of §§ 58-6A-1 to 58-6A-3.11.

Any retention group licensed before July 1, 2016, shall be in compliance with §§ 58-6A-1 to 58-6A-3.11, inclusive, by July 1, 2017. Any risk retention group licensed after June 30, 2016, shall be in compliance with §§ 58-6A-1 to 58-6A-3.11, inclusive, at licensure.

Source: SL 2016, ch 232, § 1.

58-6A-4. Financial information submitted to director.

Any risk retention group doing business in this state shall submit to the director:

(1)    A copy of the group's financial statement submitted to its state of domicile, which shall be certified by an independent public accountant and contain a statement of opinion on loss and loss adjustment expense reserves made by a member of the American Academy of Actuaries or a qualified loss reserve specialist under criteria established by the National Association of Insurance Commissioners;

(2)    A copy of each examination of the risk retention group as certified by the director or public official conducting the examination;

(3)    Upon request by the director, a copy of any audit performed with respect to the risk retention group; and

(4)    Such information as may be required to verify its continuing qualification as a risk retention group under this chapter.

Source: SL 1987, ch 372, § 4.

58-6A-5. Taxation of premiums--Payment by insurance producers or brokers--Payment by risk retention group--Report of premiums.

All premiums paid for coverages within this state to risk retention groups are subject to taxation at the same rate and subject to the same interest, fines, and penalties for nonpayment as that applicable to foreign admitted insurers. To the extent insurance producers are utilized, they shall report and pay the taxes for the premiums for risks which they have placed with or on behalf of a risk retention group not chartered in this state. To the extent insurance producers are not utilized or fail to pay the tax, each risk retention group shall pay the tax for risks insured within this state. Further, each risk retention group shall report all premiums paid to it for risks insured within this state.

Source: SL 1987, ch 372, § 5; SL 2001, ch 286, § 88.

58-6A-5.1. Rate of taxation on premiums--Interest, fines and penalties--Payment.

The premium tax imposed by chapter 10-44 and taxes on premiums paid for coverage of risks resident or located in this state by a purchasing group or any member of a purchasing group shall be imposed at the same rate and subject to the same interest, fines, and penalties as that applicable to premium taxes and taxes on premiums paid for similar coverage from a similar insurance source by other insureds. The tax may be paid first by such insurance source or the insurance producer for the purchasing group or by the purchasing group or by each member of a purchasing group.

Source: SL 1988, ch 392, § 1; SL 2001, ch 286, § 89.

58-6A-6. Compliance with Unfair Trade Practices Act.

Any risk retention group, its insurance producers, and representatives shall comply with the Unfair Trade Practices Act of this state, §§ 58-33-66 to 58-33-69, inclusive.

Source: SL 1987, ch 372, § 6; SL 2001, ch 286, § 90.

58-6A-7. Compliance with laws regarding deceptive, false, or fraudulent acts or practices--Injunction.

Any risk retention group shall comply with the laws of this state, chapter 58-33, regarding deceptive, false, or fraudulent acts or practices. However, if the director seeks an injunction regarding such conduct, the injunction shall be obtained from a court of competent jurisdiction.

Source: SL 1987, ch 372, § 7.

58-6A-8. Examination by director.

Any risk retention group shall submit to an examination by the director to determine its financial condition if the director of the jurisdiction in which the group is chartered has not initiated an examination or does not initiate an examination within sixty days after a request by the director of this state. Any such examination shall be coordinated to avoid unjustified repetition and conducted in an expeditious manner in accordance with the National Association of Insurance Commissioners' Examiners Handbook.

Source: SL 1987, ch 372, § 8.

58-6A-9. Notice contained on policy--Contents.

Any policy issued by any person, firm, association, or corporation licensed pursuant to the provisions of chapter 58-6A, on business placed with risk retention groups or written through a purchasing group, shall inform each prospective insured of the provisions of the notice and shall contain in ten-point type on the front page and the declaration page, 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.

Source: SL 1987, ch 372, § 9; SL 1988, ch 392, § 2.

58-6A-10. Prohibited acts by risk retention group.

The following acts by a risk retention group are hereby prohibited:

(1)    The solicitation or sale of insurance by a risk retention group to any person who is not eligible for membership in such group; and

(2)    The solicitation or sale of insurance by, or operation of, a risk retention group that is in a hazardous financial condition or is financially impaired.

Source: SL 1987, ch 372, § 10.

58-6A-11. Insurance company as member or owner.

No risk retention group shall be 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.

Source: SL 1987, ch 372, § 11.

58-6A-12. Compliance with voluntary dissolution or delinquency order by group not chartered if financially impaired.

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 director if there has been a finding of financial impairment after an examination under this chapter.

Source: SL 1987, ch 372, § 12.

58-6A-13. Financial contribution to or benefit from insurance insolvency guaranty fund prohibited.

No risk retention group may be permitted to join or contribute financially to any insurance insolvency guaranty fund, or similar mechanism, in this state, nor shall any risk retention group, or its insureds, receive any benefit from any such fund for claims arising out of the operations of such risk retention group.

Source: SL 1987, ch 372, § 13.

58-6A-14. Countersignature on policy not required.

A policy of insurance issued to a risk retention group or any member of that group is not required to be countersigned.

Source: SL 1987, ch 372, § 14; SL 2021, ch 210, § 3.

58-6A-15. Prohibited insurance coverage.

A risk retention group may not offer insurance coverage prohibited under the insurance laws of this state or declared unlawful by the Supreme Court of this state.

Source: SL 1987, ch 372, § 15.