(a) Risk retention groups. Persons representing or aiding a risk retention group in the solicitation or negotiation of liability insurance in this state and the risk retention group with respect thereto shall be subject to Chapters 7 and 8A of this title.
(b) Purchasing groups.
(1) No person, firm, association, or corporation shall act or aid in any manner in soliciting, negotiating, or procuring liability insurance in this state for a purchasing group from an authorized insurer or a risk retention group chartered in a state unless the person, firm, association, or corporation is licensed as an insurance producer in accordance with Chapter 7, commencing with Section 27-7-1, of this title.
(2) No person, firm, association, or corporation shall act or aid in any manner in soliciting, negotiating, or procuring liability insurance coverage in this state for any member of a purchasing group under a purchasing group's policy unless that person, firm, association, or corporation is licensed as an insurance producer in accordance with Chapter 7, commencing with Section 27-7-1, of this title.
(3) No person, firm, association, or corporation shall act or aid in any manner in soliciting, negotiating, or procuring liability insurance from an insurer not authorized to do business in this state on behalf of a purchasing group located in this state unless the person, firm, association, or corporation is licensed as a surplus line broker in accordance with Chapter 10, commencing with Section 27-10-1, of this title.
(c) Residence requirement. For purposes of acting as a producer for a risk retention group or purchasing group, pursuant to subsections (a) and (b), any requirement of residence in this state shall not apply.
(d) Notice. Every person, firm, association, or corporation licensed, pursuant to the provisions of Chapter 7, commencing with Section 27-7-1, of this title, on business placed with risk retention groups or written through a purchasing group, shall inform each prospective insured of the provisions of the notice required by subdivision (6) of Section 27-31A-4 in the case of a risk retention group and subsection (b) of Section 27-31A-9 in the case of a purchasing group.
Structure Code of Alabama
Chapter 31A - Risk Retention Act.
Section 27-31A-1 - Short Title and Purpose.
Section 27-31A-2 - Definitions.
Section 27-31A-3 - Risk Retention Groups Chartered in This State.
Section 27-31A-3.1 - Risk Retention Groups to Comply With Governance Standards.
Section 27-31A-4 - Risk Retention Groups Not Chartered in This State.
Section 27-31A-5 - Compulsory Associations.
Section 27-31A-6 - Countersignatures Not Required.
Section 27-31A-7 - Purchasing Groups - Exemption From Certain Laws.
Section 27-31A-8 - Notice and Registration Requirements of Purchasing Groups.
Section 27-31A-9 - Restrictions on Insurance Purchased by Purchasing Groups.
Section 27-31A-10 - Purchasing Group Taxation.
Section 27-31A-12 - Duty of Producers to Obtain License.
Section 27-31A-13 - Binding Effect of Orders Issued in u.s. District Court.