Title 31A Chapter 15 Section 208

Insurance Code
Unauthorized Insurers, Surplus Lines, and Risk Retention Groups
Section 208
Purchasing groups -- Filing and registration requirements.

            

31A-15-208.   Purchasing groups -- Filing and registration requirements.

            (1) A purchasing group that intends to do business in this state shall, prior to doing business, furnish notice to the insurance commissioner:

            (a) identifying the state in which the purchasing group is domiciled;

            (b) identifying any state in which the purchasing group intends to do business;

            (c) specifying the lines and classifications of liability insurance that the purchasing group intends to purchase;

            (d) identifying the insurers from which the group intends to purchase its insurance and the domicile of the insurers;

            (e) specifying the method by which, and any persons through whom, insurance will be offered to group members whose risks are resident or located in this state;

            (f) identifying the principal place of business of the purchasing group; and

            (g) providing any other information required by the commissioner to verify that the purchasing group is a "purchasing group," as defined in Section 31A-15-202.

            (2) A purchasing group shall notify the commissioner of a change in an item listed in Subsection (1) within 10 days of the change.

            (3) (a) A purchasing group shall annually register with the commissioner and pay a filing fee.

            (b) A purchasing group shall designate the commissioner as its agent solely for the purpose of receiving service of legal documents or process.

            (c) The registration and fee requirements of this Subsection (3) do not apply to a purchasing group that only purchases insurance that was authorized under the Product Liability Risk Retention Act of 1981, and that:

            (i) in any state of the United States:

            (A) was domiciled before April 1, 1986; and

            (B) is domiciled after October 27, 1986;

            (ii) (A) before October 27, 1986, purchased insurance from an insurer licensed in any state; and

            (B) since October 27, 1986, purchased its insurance from an insurer licensed in any state; or

            (iii) was a purchasing group under the requirements of the Product Liability Risk Retention Act of 1981 before October 27, 1986.

            (4) A purchasing group that is required to give notice under Subsection (1) shall also furnish information required by the commissioner to:

            (a) verify that the entity qualifies as a purchasing group;

            (b) determine where the purchasing group is located; and

            (c) determine appropriate tax treatment of the purchasing group.


Amended by Chapter 10, 2010 General Session