Download as PDF
304.45-040 Requirements for doing business -- Exemptions.
Risk retention groups chartered and licensed in states other than this state and
seeking to do business as a risk retention group in this state shall observe and abide
by the laws of this state as follows:
(1) Before offering insurance in this state, a risk retention group shall submit to the
commissioner:
(a) A statement identifying the state or states in which the risk retention
group is chartered and licensed as a liability insurance company, date of
chartering and licensing, its principal place of business, and such other
information, including information on its membership, as the
commissioner of this state may require to verify that the risk retention
group is qualified under KRS 304.45-020(11);
(b) A copy of its plan of operations or a feasibility study and revisions of such
plan or study submitted to its state of domicile, but the provision relating
to the submission of a plan of operation or a feasibility study shall not
apply as to any kind or classification of liability insurance which was
defined in the Product Liability Risk Retention Act of 1981 before October
27, 1986, and was offered before such date by any risk retention group
which had been chartered and operating for not less than three (3) years
before such date; and
(c) A statement of registration which designates the Secretary of State as its
agent for the purpose of receiving service of legal documents or process.
(2) Any risk retention group doing business in this state shall submit to the
commissioner:
(a) A copy of the group's financial statement submitted to the state in which
the risk retention group is chartered and licensed, which shall be certified
by an independent public accountant and contain a statement of opinion
on loss and loss adjustment expense reserves made by a member of the
American Academy of Actuaries or a qualified loss reserve specialist
under criteria established by the National Association of Insurance
Commissioners;
(b) A copy of each financial, market conduct, or other examination of the risk
retention group as certified by the commissioner or public official
conducting the examination;
(c) Upon request by the commissioner, a copy of any audit performed with
respect to the risk retention group; and
(d) Such information as may be required to verify its continuing qualification
as a risk retention group under KRS 304.45-020(11).
(3) A risk retention group shall, within ten (10) days, notify the commissioner of
any changes in any of the information required in subsections (1) and (2) of this
section.
(4) Any risk retention group shall submit to an examination by the commissioner to
determine its financial condition if the commissioner of the jurisdiction in which
the group is chartered and licensed has not initiated an examination or does
not initiate an examination within sixty (60) days after a request by the
commissioner of this state. Any such examination shall be coordinated to avoid
unjustified repetition and conducted in an expeditious manner and in
accordance with the National Association of Insurance Commissioners'
examiner handbook. Such examinations shall be conducted in accordance with
KRS 304.2-210 to 304.2-300.
(5) Any application used or any policy issued by a risk retention group shall
contain in ten (10) point boldface type the following legend:
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.
(6) In the solicitation or sale of insurance, a risk retention group shall not:
(a) Solicit or sell insurance to any person who is not eligible for membership
in such group; and
(b) Solicit or sell insurance issued by, or otherwise operate, a risk retention
group that is in a hazardous financial condition or is financially impaired.
(7) No risk retention group shall be allowed to do business in this state if an
insurance company is directly or indirectly a member or owner of such risk
retention group, except if all members of the risk retention group are insurance
companies.
(8) A risk retention group shall not offer insurance policy coverage prohibited by
statute or regulation or declared unlawful by the highest court of this state.
(9) A risk retention group not chartered in this state and doing business in this
state shall comply with a lawful order issued in a voluntary dissolution
proceeding or in a delinquency proceeding commenced by a commissioner if
there has been a finding of financial impairment after an examination under
subsection (4) of this section.
(10) A risk retention group registered in this state as a product liability risk retention
group under the provisions of KRS Chapter 304 in effect prior to July 13, 1990,
may continue to act as such without complying with this subtitle as long as it
complies with the provisions of KRS Chapter 304 in effect prior to July 13,
1990. The exception provided in this subsection shall cease to apply to any
product liability risk retention group which offers kinds of liability insurance
other than product liability or completed operations liability insurance.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1575, effective July 15, 2010. -Amended 1994 Ky. Acts ch. 92, sec. 8, effective July 15, 1994. -- Amended
1990 Ky. Acts ch. 165, sec. 4, effective July 13, 1990. -- Created 1986 Ky. Acts
ch. 308, sec. 4, effective July 15, 1986.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.