PARRIS N. GLENDENING, Governor

Ch. 11

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

The only changes are in style.

Defined terms: "Liability" § 25-101
"Person" § 1-101

(I) PURCHASING GROUP.

"PURCHASING GROUP" MEANS A GROUP THAT:

(1)      HAS AS A PURPOSE THE PURCHASE OF LIABILITY INSURANCE ON A
GROUP BASIS;

(2)      PURCHASES LIABILITY INSURANCE ONLY FOR ITS GROUP MEMBERS
AND ONLY TO COVER THE SIMILAR OR RELATED LIABILITY EXPOSURE OF THE
GROUP MEMBERS;

(3)      IS COMPOSED OF MEMBERS ENGAGED IN BUSINESSES OR
ACTIVITIES THAT ARE SIMILAR OR RELATED WITH RESPECT TO THE LIABILITY TO
WHICH THE MEMBERS ARE EXPOSED BY VIRTUE OF RELATED, SIMILAR, OR
COMMON BUSINESS, TRADE, PRODUCTS, SERVICES, PREMISES, OR OPERATIONS; AND

(4)      HAS ITS DOMICILE IN A STATE.

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

In item (2) of this subsection, the former phrase "as described in paragraph
(3) of this subsection" is deleted as unnecessary in light of item (3) of this
subsection.

The only other changes are in style.

Defined terms: "Domicile" § 25-101
"Insurance" § 25-101
"Liability" § 25-101
"State" § 25-101

(J) RISK RETENTION GROUP.

"RISK RETENTION GROUP" MEANS A CORPORATION OR OTHER LIMITED
LIABILITY ASSOCIATION:

(1)      THAT IS FORMED UNDER THE LAWS OF A STATE, BERMUDA, OR THE
CAYMAN ISLANDS;

(2)      THE PRIMARY ACTIVITY OF WHICH CONSISTS OF ASSUMING AND
SPREADING ALL OR PART OF THE LIABILITY EXPOSURE OF ITS GROUP MEMBERS;

(3)      THAT IS ORGANIZED FOR THE PRIMARY PURPOSE OF CONDUCTING
THE ACTIVITY DESCRIBED IN ITEM (2) OF THIS SUBSECTION;

(4)      THAT:

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