2014 New York Laws
ISC - Insurance
Article 59 - (5901 - 5913) RISK RETENTION GROUPS AND PURCHASING GROUPS
5909 - Restrictions on insurance obtained by purchasing groups.

 5909. Restrictions on insurance obtained by purchasing groups. (a) A
  purchasing  group  located  in  this  state shall not purchase liability
  insurance from a risk retention group not chartered in a state  or  from
  an insurer not authorized in this state, unless the purchase is effected
  pursuant  to  section  two thousand one hundred eighteen of this chapter
  through an excess line broker licensed pursuant to section two  thousand
  one  hundred  five  of  this  chapter,  except where otherwise permitted
  pursuant to section two thousand one hundred seventeen of this chapter.
(b) The terms of any liability insurance policy issued or  issued  for
  delivery in this state to a purchasing group or any of its members shall
  not  provide,  or be construed to provide, insurance coverage prohibited
  generally by state statute or declared unlawful by the highest court  of
  the  state  whose  law  applies to such policy. If the law of this state
  applies to an insurance policy obtained by a purchasing group, the terms
  of that policy shall not provide or be construed  to  provide  insurance
  coverage  prohibited  generally by state statute or declared unlawful by
  the highest court of this state which has construed such coverage.
(c) A purchasing group  which  obtains  liability  insurance  from  an
  insurer  not  authorized  in  this state or a risk retention group shall
  inform each of the members of such group which have a risk  resident  or
  located  in  this  state that such risk is not protected by an insurance
  insolvency security fund in this state, and  that  such  risk  retention
  group  or  such  insurer  may  not  be subject to all insurance laws and
  regulations of this state.
(d) No liability insurance policy issued or  issued  for  delivery  in
  this  state  to a purchasing group or a member of such group with a risk
  resident or located within this state shall provide for a deductible  or
  self-insured   retention   shared  among  purchasing  group  members  or
  applicable to the group itself.