§ 23-94-201. Title
This subchapter may be cited as the “Risk Retention and Purchasing Groups Act”.
§ 23-94-202. Purpose
The purpose of this subchapter is to regulate the formation and operation of risk retention groups and purchasing groups in this state formed pursuant to the provisions of the Liability Risk Retention Act of 1986 (“RRA 1986”), to the extent permitted by such law.
§ 23-94-203. Definitions
As used in this subchapter: (1) “Commissioner” means the Insurance Commissioner of this state or the commissioner, director, or superintendent of insurance in any other state; (2) “Completed operations liability” means liability arising out of the installation, maintenance, or repair of any product at a site which is not owned or controlled by: (A) Any […]
§ 23-94-204. Domestic risk retention groups — Definitions
(a) (1) To be organized as a risk retention group in this state, the risk retention group must be organized and licensed to write only casualty insurance pursuant to this subchapter and, except as provided elsewhere in this subchapter, must comply with all of the laws, rules, and requirements applicable to such insurers licensed in […]
§ 23-94-205. Foreign risk retention groups
Risk retention groups chartered and licensed in states other than this state and seeking to do business as a risk retention group in this state must apply for and obtain a certificate of registration from the commissioner using the forms prescribed by the State Insurance Department. The commissioner shall issue a certificate of registration to […]
§ 23-94-206. Compulsory associations
(a) No risk retention group shall be required or permitted to join or contribute financially to any insurance insolvency guaranty fund, or similar mechanism, in this state, nor shall any risk retention group, or its insureds or claimants against its insureds, receive any benefit from any such fund for claims arising under the insurance policies […]
§ 23-94-207. Purchasing groups — Exemption from certain laws
A purchasing group and its insurer or insurers shall be subject to all applicable laws of this state, except that a purchasing group and its insurer or insurers shall be exempt, in regard to liability insurance for the purchasing group, from any law that would: (1) Prohibit the establishment of a purchasing group; (2) Make […]
§ 23-94-208. Notice and registration requirements of purchasing groups
(a) (1) A purchasing group that intends to do business in this state shall obtain a certificate of registration from the Insurance Commissioner. (2) The commissioner shall issue a certificate of registration to a purchasing group organized and formed under the laws of any state if the commissioner is satisfied that the applicant has complied […]
§ 23-94-209. Restrictions on insurance purchased by purchasing groups
(a) A purchasing group may not purchase insurance from a risk retention group that does not hold a certificate of registration in this state or from an insurer not admitted in the state in which the purchasing group is located, unless the purchase is effected through a licensed agent or broker acting pursuant to the […]
§ 23-94-210. Taxation
(a) Each authorized risk retention group shall, on or before March 1 of each year, file with the commissioner on forms prescribed by the commissioner a statement for the preceding calendar year showing all premiums paid to the risk retention group for risks insured within this state. (b) Coincident with the filing of the report, […]
§ 23-94-211. License fees
The provisions as to fees for obtaining and continuing licenses for insurers, agents, and brokers under § 23-61-401 shall be applicable to risk retention groups, purchasing groups, risk retention group agents and purchasing group brokers, resident surplus lines brokers, and nonresident surplus lines purchasing group brokers under the provisions of this subchapter and the Surplus […]
§ 23-94-212. Administrative and procedural authority regarding risk retention groups and purchasing groups
The commissioner is authorized to make use of any of the powers established under the Arkansas Insurance Code to enforce the laws of this state not specifically preempted by the Liability Risk Retention Act of 1986, including the commissioner’s administrative authority to investigate, issue subpoena, conduct depositions and hearings, issue orders, impose penalties, and seek […]
§ 23-94-213. Duty of agents or brokers to obtain license
(a) Risk Retention Group Agents. Any person acting, or offering to act, as an agent or broker for a registered risk retention group which solicits members, sells insurance coverage, or otherwise does business in this state shall, before commencing any such activity, obtain a resident or nonresident risk retention group agent license from the commissioner […]
§ 23-94-214. Binding effect of orders issued in United States District Court
An order issued by any district court of the United States enjoining a risk retention group from soliciting or selling insurance, or operating in any state, or in all states or in any territory or possession of the United States, upon a finding that the risk retention group is in hazardous financial or financially impaired […]
§ 23-94-215. Rules
The commissioner may establish and from time to time amend such rules relating to risk retention groups as may be necessary or desirable to carry out the provisions of this subchapter.