(a) A purchasing group may not purchase insurance from a risk retention group that is not chartered in a 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 surplus lines laws and regulations of the state.
(b) A purchasing group which obtains casualty insurance from an insurer not admitted in this state, or a risk retention group, shall inform each of the members of the group which have a risk resident or located in this state that the risk is not protected by an insurance insolvency guaranty fund in this state, and that the risk retention group or that insurer may not be subject to all insurance laws and regulations of this state.
(c) No purchasing group may purchase insurance providing for a deductible or self-insured retention applicable to the group as a whole. Coverage may provide for a deductible or self-insured retention applicable to individual members.
(d) Purchases of insurance by purchasing groups are subject to the same standards regarding aggregate limits which are applicable to all purchases of group insurance.
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.