Arizona Laws 20-2404. Compulsory associations
A. No risk retention group is required or permitted to join or contribute financially to any insurance insolvency guaranty fund, or similar mechanism, in this state, and no risk retention group, or its insureds or claimants against its insureds, may receive any benefit from any fund for claims arising under the insurance policies issued by the risk retention group.
Terms Used In Arizona Laws 20-2404
- 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 Arizona Laws 20-2401
- Purchasing group: means a group which meets all of the following criteria:
(a) Has as one of its purposes the purchase of liability insurance on a group basis. See Arizona Laws 20-2401
- Risk retention group: means a corporation or other limited liability association formed under the laws of any state which meets all of the following criteria:
(a) Its primary activity consists of assuming and spreading all or any portion of the liability exposure of its group members. See Arizona Laws 20-2401
- State: means any state of the United States or the District of Columbia. See Arizona Laws 20-2401
B. If a purchasing group obtains insurance covering its members’ risks from an insurer that is not authorized in this state or a risk retention group, no risks wherever resident or located may be covered by any insurance guaranty fund or similar mechanism in this state.
C. If a purchasing group obtains insurance covering its members’ risks from an authorized insurer, only risks resident or located in this state may be covered by the state guaranty fund.
D. A risk retention group shall participate in this state’s joint underwriting associations and mandatory liability pools as provided by this title.