Arizona Laws 20-2408. Restrictions on insurance purchased by purchasing groups
A. A purchasing group may not purchase insurance from a risk retention group that is not chartered in a state or from an insurer which is not admitted in the state in which the purchasing group is located, unless the purchase is effected through a licensed insurance producer.
Terms Used In Arizona Laws 20-2408
- 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. No purchasing group may offer insurance policy coverage prohibited by this title or declared unlawful by the supreme court of this state.
C. A purchasing group which obtains liability insurance from an insurer that is not admitted in this state or a risk retention group shall inform each of the members of the group which have a risk resident or located in this state that the risk is not protected by an insurance insolvency guaranty fund in this state and that the risk retention group or the insurer may not be subject to all insurance laws and rules of this state.