§ 27-46-5. Compulsory associations.
(a) No risk retention group shall be required or permitted to join or contribute financially to any insurance insolvency fund, or similar mechanism, in this state, nor shall any risk retention group, or its insured or claimants against its insureds, receive any benefit from any such fund for claims arising under the insurance policies issued by the risk retention group.
(b) When a purchasing group obtains insurance covering its members’ risks from an insurer not authorized or licensed in this state or a risk retention group, none of these risks, wherever resident or located, shall be covered by an insurance insolvency fund or similar mechanism in this state.
(c) When a purchasing group obtains insurance covering its members’ risks from a member insurer of the Rhode Island insurance insolvency fund only those risks as are subject to the insolvency fund shall be covered by the insolvency fund.
History of Section.P.L. 1991, ch. 348, § 1.
Structure Rhode Island General Laws
Chapter 27-46 - Risk Retention Act
Section 27-46-2. - Definitions.
Section 27-46-3. - Risk retention groups chartered in this state.
Section 27-46-4. - Risk retention groups not chartered in this state.
Section 27-46-5. - Compulsory associations.
Section 27-46-6. - Countersignatures not required.
Section 27-46-7. - Purchasing groups — Exemption from certain laws.
Section 27-46-8. - Notice and registration requirements of purchasing groups.
Section 27-46-9. - Restrictions on insurance purchased by purchasing groups.
Section 27-46-10. - Purchasing group taxation.
Section 27-46-12. - Duty of agents or brokers or insurance producers to obtain license.
Section 27-46-13. - Binding effect of orders issued in U.S. district court.