PARRIS N. GLENDENING, Governor

Ch. 11

(1)      A PURCHASING GROUP SHALL PROVIDE TO THE COMMISSIONER A
STATEMENT OF REGISTRATION THAT DESIGNATES THE COMMISSIONER AS ITS
AGENT FOR SERVICE OF LEGAL PROCESS.

(2)      THE COMMISSIONER SHALL DETERMINE THE FILING FEE FOR THE
STATEMENT OF REGISTRATION REQUIRED BY PARAGRAPH (1) OF THIS SUBSECTION.

(3)      THE REQUIREMENTS OF PARAGRAPH (1) OF THIS SUBSECTION DO
NOT APPLY TO A PURCHASING GROUP THAT:

(I)       1. HAD ITS DOMICILE ON OR BEFORE MARCH 31, 1986 IN A
STATE; AND

2. HAS ITS DOMICILE ON OR AFTER OCTOBER 27, 1986 IN A
STATE;

(II)     1. ON OR BEFORE OCTOBER 26, 1986, PURCHASED
INSURANCE FROM AN INSURER LICENSED IN A STATE; AND

2. ON OR AFTER OCTOBER 27, 1986, PURCHASED INSURANCE
FROM AN INSURER LICENSED IN A STATE;

(III)    WAS A PURCHASING GROUP UNDER THE REQUIREMENTS OF
THE PRODUCT LIABILITY RISK RETENTION ACT OF 1981 ON OR BEFORE OCTOBER 26,
1986; AND

(IV)    ONLY PURCHASES INSURANCE THAT WAS AUTHORIZED
UNDER THE PRODUCT LIABILITY RISK RETENTION ACT OF 1981, AS IN EFFECT ON OR
BEFORE OCTOBER 26, 1986.

(D) RESTRICTIONS ON PURCHASE OF INSURANCE.

(1)      UNLESS THE PURCHASE IS EFFECTED THROUGH A LICENSED AGENT
OR BROKER ACTING UNDER THE SURPLUS LINES INSURANCE LAWS AND
REGULATIONS OF A STATE, A PURCHASING GROUP MAY NOT PURCHASE
INSURANCE FROM A RISK RETENTION GROUP THAT IS NOT CHARTERED IN THAT
STATE OR FROM AN INSURER NOT AUTHORIZED IN THE STATE IN WHICH THE
PURCHASING GROUP IS LOCATED.

(2)      A PURCHASING GROUP THAT OBTAINS LIABILITY INSURANCE FROM
AN UNAUTHORIZED INSURER OR FROM A RISK RETENTION GROUP SHALL INFORM
EACH MEMBER OF THE PURCHASING GROUP THAT HAS A RISK RESIDENT OR
LOCATED IN THIS STATE THAT:

(I)      THE RISK IS NOT PROTECTED BY THE PROPERTY AND
CASUALTY INSURANCE GUARANTY CORPORATION; AND

(II)     THE RISK RETENTION GROUP OR UNAUTHORIZED INSURER
MAY NOT BE SUBJECT TO ALL INSURANCE LAWS AND REGULATIONS OF THE STATE.

(3)      (I) A PURCHASING GROUP MAY NOT PURCHASE INSURANCE
COVERAGE THAT PROVIDES FOR A DEDUCTIBLE OR SELF-INSURED RETENTION
APPLICABLE TO THE PURCHASING GROUP AS A WHOLE.

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