West Virginia Code 33-32-10 – Prohibited acts regarding solicitation or sale
The following acts by a risk retention group are hereby prohibited:
Terms Used In West Virginia Code 33-32-10
- 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:
(1) To meet obligations to policyholders with respect to known claims and reasonably anticipated claims. See West Virginia Code 33-32-2
- 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. See West Virginia Code 33-32-2
- Risk retention group: means any corporation or other
limited liability association formed under the laws of any state: (1) Whose primary activity consists of assuming and spreading all, or any portion, of the liability exposure of its group members. See West Virginia Code 33-32-2
(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.