Ch. 396                                    LAWS OF MARYLAND

(F)  ANY POLICY ISSUED BY A RISK RETENTION GROUP FOR OR ON
BEHALF OF RESIDENTS OF THIS STATE SHALL CONTAIN, IN 10 POINT TYPE
ON THE FRONT PAGE AND 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."

(G)  IN ADDITION TO ANY OTHER PROHIBITION SET FORTH IN THIS
SUBTITLE, THE FOLLOWING ACTS BY A RISK RETENTION GROUP ARE
PROHIBITED:

(1)  THE SOLICITATION OR SALE OF INSURANCE TO A PERSON
WHO IS NOT ELIGIBLE FOR MEMBERSHIP IN THE 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.

(H) A RISK RETENTION GROUP MAY NOT BE PERMITTED TO DO
BUSINESS IN THIS STATE IF AN INSURANCE COMPANY IS DIRECTLY OR
INDIRECTLY A MEMBER OR OWNER OF SUCH RISK RETENTION GROUP, UNLESS

THE GROUP IS COMPRISED ENTIRELY OF INSURANCE COMPANIES.

(I) A RISK RETENTION GROUP MAY NOT OFFER INSURANCE POLICY
COVERAGE PROHIBITED BY THIS ARTICLE OR DECLARED UNLAWFUL BY THE
COURT OF APPEALS OF MARYLAND.

(J) IF THERE HAS BEEN A FINDING OF FINANCIAL IMPAIRMENT
AFTER AN EXAMINATION UNDER SECTION § 619(E) OF THIS SUBTITLE, 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 STATE INSURANCE COMMISSIONER.

620.

(A)  A RISK RETENTION GROUP MAY NOT JOIN OR CONTRIBUTE
FINANCIALLY TO ANY INSURANCE INSOLVENCY GUARANTY FUND, OR SIMILAR
MECHANISM, IN THIS STATE.

(B)  A RISK RETENTION GROUP AND ITS INSUREDS MAY NOT RECEIVE
ANY BENEFIT FROM ANY SUCH FUND FOR CLAIMS ARISING OUT OF THE
OPERATIONS OF SUCH RISK RETENTION GROUP.

621.                                                                                   

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