(a) State laws

Nothing in this subchapter shall be construed to affect either the tort law or the law governing the interpretation of insurance contracts of any State. The definitions of pollution liability and pollution liability insurance under any State law shall not be applied for the purposes of this subchapter, including recognition or qualification of risk retention groups or purchasing groups.

(b) Scope of subchapter

Terms Used In 42 USC 9672

  • 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 applicable State or Federal law. See 42 USC 9671
  • pollution liability: means liability for injuries arising from the release of hazardous substances or pollutants or contaminants. See 42 USC 9671
  • purchasing group: means any group of persons which has as one of its purposes the purchase of pollution liability insurance on a group basis. See 42 USC 9671
  • risk retention group: means any corporation or other limited liability association taxable as a corporation, or as an insurance company, formed under the laws of any State--

    (A) whose primary activity consists of assuming and spreading all, or any portion, of the pollution liability of its group members. See 42 USC 9671

  • State: means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin Islands, the Commonwealth of the Northern Marianas, and any other territory or possession over which the United States has jurisdiction. See 42 USC 9671
  • Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.

The authority to offer or to provide insurance under this subchapter shall be limited to coverage of pollution liability risks and this subchapter does not authorize a risk retention group or purchasing group to provide coverage of any other line of insurance.