Montana Code 33-11-108. Notice and registration requirements of purchasing groups
33-11-108. Notice and registration requirements of purchasing groups. (1) A purchasing group that intends to do business in this state shall furnish notice to the commissioner that:
Terms Used In Montana Code 33-11-108
- Insurance: means primary insurance, excess insurance, reinsurance, surplus line insurance, and any other arrangement for shifting and distributing risk that is determined to be insurance under the laws of this state. See Montana Code 33-11-102
- Liability: means legal liability for damages, including costs of defense, legal costs and fees, and other claims expenses, because of injuries to other persons, damage to their property, or other damage or loss to other persons resulting from or arising out of:
(i)a business, whether profit or nonprofit, trade, product, service (including professional service), premises, or operation; or
(ii)an activity of any state or local government or an agency or political subdivision of state or local government. See Montana Code 33-11-102
- Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
- Process: means a writ or summons issued in the course of judicial proceedings. See Montana Code 1-1-202
- product liability: means 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 that person when the incident giving rise to the claim occurred. See Montana Code 33-11-102
- Public law: A public bill or joint resolution that has passed both chambers and been enacted into law. Public laws have general applicability nationwide.
- Purchasing group: means a group that:
(a)has as one of its purposes the purchase of liability insurance on a group basis;
(b)purchases liability insurance only for its group members and only to cover their similar or related liability exposure, as described in subsection (7)(c);
(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, service, premises, or operation; and
(d)is domiciled in any state. See Montana Code 33-11-102
- State: means any state of the United States or the District of Columbia. See Montana Code 33-11-102
- United States: includes the District of Columbia and the territories. See Montana Code 1-1-201
(a)identifies the state where the group is domiciled and all other states in which the group intends to do business;
(b)specifies the lines and classifications of liability insurance that the purchasing group intends to purchase;
(c)identifies the insurer from which the purchasing group intends to purchase its insurance and the domicile of that insurer;
(d)identifies the Montana-licensed insurance producer or Montana-licensed surplus lines insurance producer through which the purchasing group intends to place its business;
(e)identifies the principal place of business of the purchasing group;
(f)provides information required by the commissioner to verify that the purchasing group is qualified under 33-11-102(7); and
(g)identifies the person or persons controlling the activities of the group and includes biographical information on the person or persons.
(2)The purchasing group shall register with and designate the commissioner as its agent solely for the purpose of receiving service of legal documents or process. However, the requirements do not apply in the case of a purchasing group:
(a)(i) that was domiciled before April 2, 1986, in any state of the United States; and
(ii)that was domiciled on and after October 27, 1986, in any state of the United States;
(b)(i) that, before October 27, 1986, purchased insurance from an insurer licensed in any state; and
(ii)that, since October 27, 1986, purchased its insurance from an insurer licensed in any state;
(c)that was a purchasing group under the requirements of the federal Product Liability Risk Retention Act of 1981 (15 U.S.C. § 3901 through 3904) before it was amended by Public Law 99-563, approved on October 27, 1986; and
(d)that does not purchase insurance that was not authorized for purposes of an exemption under the federal Product Liability Risk Retention Act of 1981, as in effect before October 27, 1986.
(3)Upon completion of registration requirements, the commissioner shall issue a proper certificate of registration to the purchasing group.