PARRIS N. GLENDENING, Governor                                  Ch. 11

(1)      A RISK RETENTION GROUP MAY NOT JOIN OR CONTRIBUTE
FINANCIALLY TO AN INSURANCE INSOLVENCY GUARANTY FUND OR SIMILAR
MECHANISM IN THE STATE.

(2)      A RISK RETENTION GROUP AND ITS INSUREDS MAY NOT RECEIVE A
BENEFIT FROM AN INSURANCE INSOLVENCY GUARANTY FUND OR SIMILAR
MECHANISM FOR CLAIMS ARISING OUT OF THE OPERATIONS OF THE RISK
RETENTION GROUP.

(B) RISKS OF PURCHASING GROUP MEMBERS.

(1)      WHEN A PURCHASING GROUP OBTAINS INSURANCE THAT COVERS
THE RISKS OF ITS MEMBERS FROM AN UNAUTHORIZED INSURER OR FROM A RISK
RETENTION GROUP, THE RISKS, WHETHER RESIDENT OR LOCATED, MAY NOT BE
COVERED BY AN INSURANCE INSOLVENCY GUARANTY FUND OR SIMILAR
MECHANISM IN THE STATE.

(2)      WHEN A PURCHASING GROUP OBTAINS INSURANCE THAT COVERS
THE RISKS OF ITS MEMBERS FROM AN AUTHORIZED INSURER, ONLY RISKS
RESIDENT OR LOCATED IN THE STATE SHALL BE COVERED BY THE PROPERTY AND
CASUALTY INSURANCE GUARANTY CORPORATION UNDER TITLE 9, SUBTITLE 3 OF
THIS ARTICLE.

REVISOR'S NOTE: This section formerly was Art. 48A, § 620.

In subsection (b)(1) of this section, the reference to an insurance "insolvency"
guaranty fund is added to conform to language used in subsection (a) of this
section.

The only other changes are in style.

Defined terms: "Authorized insurer" § 1-101
"Insurance" § 25-101
"Purchasing group" § 25-101
"Risk retention group" § 25-101
"Unauthorized insurer" § 1-101

25-105. COUNTERSIGNATURE OF POLICY.

A POLICY ISSUED TO A RISK RETENTION GROUP OR A MEMBER OF THAT RISK
RETENTION GROUP MAY NOT BE REQUIRED TO BE COUNTERSIGNED.

REVISOR'S NOTE: This section formerly was Art. 48A, § 621.

The only changes are in style.

Defined terms: "Policy" § 1-101

"Risk retention group" § 25-101

25-106. PURCHASING GROUPS.

(A) APPLICABILITY OF STATE LAWS.

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