2006 New York Code - Risk Retention Groups; Notice, Prohibited Solicitation, Coverage And Ownership.

 
    §  5905.  Risk  retention  groups;  notice,  prohibited  solicitation,
  coverage and ownership. (a) Notice to purchasers.  (1)  Every  insurance
  policy  issued by a risk retention group shall contain in ten point type
  on the front page and on the declaration page, the following notice:
 
                                   NOTICE
            This policy is issued by your risk retention  group.
            Your  risk retention group may not be subject to all
            of the insurance laws and regulations of your state.
            State insurance insolvency guaranty  funds  are  not
            available for your risk retention group.
 
    (2)  Every application for insurance from a risk retention group shall
  prominently contain a similar notice.
    (b) Prohibited acts regarding solicitation or sale. The following acts
  by a risk retention group are prohibited:
    (1) The solicitation or sale of insurance to any  person  who  is  not
  eligible for membership in such group; and
    (2)  The solicitation or sale of insurance by, or operation of, a risk
  retention group that  is  in  a  hazardous  financial  condition  or  is
  financially impaired.
    (c)  Prohibited  coverage. The terms of any insurance policy issued or
  issued for delivery in this state by any such risk retention group shall
  not provide, or be construed to provide, coverage  prohibited  generally
  by  statute  of  this state or declared unlawful by the highest court of
  this state whose law applies to such policy.
    (d) Prohibition on ownership by an insurer. No  risk  retention  group
  shall  do business in this state if an insurer is directly or indirectly
  a member or owner of such risk retention group, other than in  the  case
  of a risk retention group all of whose members are insurers.