Ch. 11

1996 LAWS OF MARYLAND

(2)      FOR EACH STATE IN WHICH THE RISK RETENTION GROUP INTENDS
TO OPERATE, THE COVERAGES, DEDUCTIBLES, COVERAGE LIMITS, RATES, AND
RATING CLASSIFICATION SYSTEMS FOR EACH LINE OF INSURANCE THAT THE RISK
RETENTION GROUP INTENDS TO OFFER;

(3)      HISTORICAL AND EXPECTED LOSS EXPERIENCE OF THE PROPOSED
MEMBERS AND NATIONAL EXPERIENCE OF SIMILAR EXPOSURES, TO THE EXTENT
THIS EXPERIENCE IS REASONABLY AVAILABLE;

(4)      PRO FORMA FINANCIAL STATEMENTS AND PROJECTIONS;

(5)      APPROPRIATE OPINIONS BY A QUALIFIED, INDEPENDENT
CASUALTY ACTUARY, INCLUDING A DETERMINATION OF MINIMUM PREMIUM OR
PARTICIPATION LEVELS REQUIRED TO BEGIN OPERATIONS AND TO PREVENT A
HAZARDOUS FINANCIAL CONDITION;

(6)      IDENTIFICATION OF MANAGEMENT, UNDERWRITING AND CLAIMS
PROCEDURES, MARKETING METHODS, MANAGERIAL OVERSIGHT METHODS,
INVESTMENT POLICIES, AND REINSURANCE AGREEMENTS;

(7)      IDENTIFICATION OF EACH STATE IN WHICH THE RISK RETENTION
GROUP HAS OBTAINED OR SOUGHT TO OBTAIN A CHARTER AND LICENSE, AND A
DESCRIPTION OF ITS STATUS IN EACH STATE IDENTIFIED; AND

(8)      ANY OTHER MATTERS REQUIRED BY THE COMMISSIONER OF THE
STATE IN WHICH THE RISK RETENTION GROUP IS CHARTERED FOR LIABILITY
INSURANCE COMPANIES AUTHORIZED BY THE INSURANCE LAWS OF THAT STATE.

REVISOR'S NOTE: This subsection formerly was Art. 48A, § 617(h).

The only changes are in style.

Defined terms: "Hazardous financial condition" § 25-101
"Insurance" § 25-101
"Liability" § 25-101
"Premium" § 1-101
"Reinsurance" § 1-101
"Risk retention group" § 25-101
"State" § 25-101

(H) PRODUCT LIABILITY.

(1)      "PRODUCT LIABILITY" MEANS LIABILITY FOR DAMAGES BECAUSE
OF 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 A
PERSON FOR DAMAGES IF THE PRODUCT INVOLVED WAS IN THE POSSESSION OF
THE PERSON WHEN THE INCIDENT GIVING RISE TO THE CLAIM OCCURRED.

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