WILLIAM DONALD SCHAEFER, Governor

Ch. 396

(6) SUCH OTHER MATTERS AS MAY BE PRESCRIBED BY THE

COMMISSIONER FOR LIABILITY INSURANCE COMPANIES AUTHORIZED BY THE
INSURANCE LAWS OF THE STATE IN WHICH THE RISK RETENTION GROUP IS
CHARTERED.

(I) (1) "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 THE PROPERTY, ARISING
OUT OF THE MANUFACTURE, DESIGN, IMPORTATION, DISTRIBUTION,
PACKAGING, LABELING, LEASE OR SALE OF A PRODUCT.

(2) "PRODUCT LIABILITY" DOES NOT INCLUDE THE
LIABILITY OF ANY PERSON FOR DAMAGES IF THE PRODUCT INVOLVED WAS
IN THE POSSESSION OF SUCH PERSON WHEN THE INCIDENT GIVING RISE TO
THE CLAIM OCCURRED.

(J) "PURCHASING GROUP" MEANS ANY GROUP WHICH:

(1) HAS AS ONE OF ITS
LIABILITY INSURANCE ON A GROUP BASIS;

PURPOSES THE PURCHASE OF

(2)  PURCHASES SUCH INSURANCE ONLY FOR ITS GROUP
MEMBERS, AND ONLY TO COVER THEIR SIMILAR OR RELATED LIABILITY
EXPOSURE, AS DESCRIBED IN PARAGRAPH (3) OF THIS SUBSECTION;

(3)  IS COMPOSED OF MEMBERS WHOSE BUSINESS 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

(4)  IS DOMICILED IN ANY STATE.

(K) "RISK RETENTION GROUP" MEANS ANY CORPORATION OR OTHER
LIMITED LIABILITY ASSOCIATION FORMED UNDER THE LAWS OF ANY STATE,
BERMUDA, OR THE CAYMAN ISLANDS:

(1) WHOSE PRIMARY ACTIVITY CONSISTS OF ASSUMING AND
SPREADING ALL, OR ANY PORTION, OF THE LIABILITY EXPOSURE OF ITS
GROUP MEMBERS;

(2)
CONDUCTING THE
SUBSECTION;

WHICH IS ORGANIZED FOR THE PRIMARY PURPOSE OF
ACTIVITY DESCRIBED IN PARAGRAPH (1) OF THIS

(3) WHICH:

(I) IS CHARTERED AND LICENSED AS A LIABILITY
INSURANCE COMPANY, AND AUTHORIZED TO ENGAGE IN THE BUSINESS OF
INSURANCE UNDER THE LAWS OF ANY STATE; OR

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