N.Y. ISC Law § 5904 — New York Code / Act ISC / Article 59 / Section 5904
Risk retention groups not chartered in this state
Status: in_force

§ 5904. Risk retention groups not chartered in this state. A risk\nretention group not chartered and licensed as a property/casualty\ninsurer in this state, seeking to do business or doing business as a\nrisk retention group in this state, shall comply with the laws of this\nstate, as follows:\n  (a) Notice of operations and designation of superintendent as agent.\nBefore offering insurance in this state, such risk retention group shall\nsubmit to the superintendent:\n  (1) a statement identifying the state or states in which the risk\nretention group is chartered and licensed as an insurance company to\nwrite liability insurance, the dates of chartering and licensing, and\nits principal place of business;\n  (2) a copy of its plan of operation or feasibility study and all\nrevisions of such plan or study submitted to its chartering and\nlicensing state; provided, however, that the provision relating to the\nsubmission of a plan of operation or feasibility study shall not apply\nwith respect to any kind or classification of liability insurance which\nwas:\n  (A) defined in the federal Product Liability Risk Retention Act of\n1981 before October twenty-seventh, nineteen hundred eighty-six; and\n  (B) offered before such date by any risk retention group which had\nbeen chartered and was operating for not less than three years before\nsuch date; and\n  (3) a statement of registration, for which a filing fee shall be\nimposed in accordance with a regulation to be promulgated by the\nsuperintendent, which statement of registration shall include a power of\nattorney designating the superintendent as its agent for the purpose of\nreceiving service of process in any proceeding against it on a contract\ndelivered or issued for delivery, or on a cause of action arising, in\nthis state.\n  (A) The power of attorney shall be accompanied by written designation\nof the name and address of the officer, agent, or other person to whom\nsuch process shall be forwarded by the superintendent or his deputy on\nbehalf of such risk retention group. In the event such designation is\nchanged, a new certificate of designation shall be filed with the\nsuperintendent within ten days of such change.\n  (B) Service of process upon a risk retention group pursuant to this\nparagraph shall be made by serving the superintendent, any deputy\nsuperintendent or any salaried employee of the department whom the\nsuperintendent designates for such purpose with two copies thereof and\nthe payment of a fee of twenty dollars. The superintendent shall forward\na copy of such process by registered or certified mail to the risk\nretention group at the address given in its written certificate of\ndesignation, and shall keep a record of all such process served.\nService of process so made shall be deemed made within the territorial\njurisdiction of any court in this state.\n  (b) Financial condition. Any such risk retention group doing business\nin this state, shall submit to the superintendent:\n  (1) a copy of the annual financial statement submitted to the state in\nwhich the risk retention group is chartered and licensed, which shall be\ncertified by an independent public accountant and contain a statement of\nopinion on loss and loss adjustment expense reserves made by a member of\nthe American Academy of Actuaries or a qualified loss reserve specialist\n(under criteria established by the National Association of Insurance\nCommissioners):\n  (2) a copy of each examination of the risk retention group as\ncertified by the commissioner or public official conducting the\nexamination;\n  (3) upon request by the superintendent, a copy of any audit performed\nwith respect to the risk retention group; and\n  (4) such information as may be required to verify its continuing\nqualification as a risk retention group.\n  (c) Taxation. (1) Any such risk retention group shall be liable for\nthe payment of franchise taxes and taxes on premiums and shall report to\nthe superintendent the gross direct premiums, less returns thereon,\nwritten on risks resident or located within this state. Any such risk\nretention group shall be deemed to be a licensed foreign insurer for the\npurposes of taxation, and any applicable fines and penalties related\nthereto.\n  (2) Whenever licensed insurance agents or insurance brokers place\nbusiness with a risk retention group, such licensee shall report to the\nsuperintendent the premiums of direct business for risks resident or\nlocated within this state which they have placed with such risk\nretention group, and such licensee shall keep a complete and separate\nrecord of all policies procured from each such risk retention group,\nwhich record shall be open to examination by the superintendent, as\nprovided in section three hundred ten of this chapter. These records\nshall, for each policy and each kind of insurance provided thereunder,\ninclude the following:\n  (A) the limit of liability;\n  (B) the time period covered;\n  (C) the effective date;\n  (D) the name of the risk retention group which issued the policy;\n  (E) the gross premium charged; and\n  (F) the amount of return premiums, if any.\n  (d) Compliance with unfair claims settlement practices law. Any such\nrisk retention group and its agents and representatives shall comply\nwith the unfair claims settlement practices provisions as set forth in\nsection two thousand six hundred one of this chapter, and any\nregulations promulgated thereunder.\n  (e) Deceptive, false, or fraudulent acts or practices. Any such risk\nretention group shall comply with the deceptive, false or fraudulent act\nor practices provisions set forth in article twenty-four of this\nchapter, and any regulations promulgated thereunder.\n  (f) Examination regarding financial condition. Any such risk retention\ngroup shall submit to an examination by the superintendent to determine\nits financial condition if the commissioner of the jurisdiction in which\nthe group is chartered and licensed has not initiated an examination or\ndoes not initiate an examination within sixty days after a request by\nthe superintendent. Any such examination shall be coordinated with other\njurisdictions to the extent feasible in order to avoid unjustified\nrepetition, and shall be conducted in an expeditious manner.\n  (g) Injunctions. Any such risk retention group shall comply with an\ninjunction issued by a court of competent jurisdiction upon a petition\nby the superintendent that the risk retention group is in hazardous\nfinancial condition or financially impaired.\n  (h) Dissolution or article seventy-four proceedings. Any such risk\nretention group shall comply with any lawful order issued in a voluntary\ndissolution proceeding or in an article seventy-four proceeding\ncommenced by the superintendent if there has been a finding, after an\nexamination conducted pursuant to subsection (f) of this section, that\nsuch risk retention group is financially impaired.\n  (i) Operation prior to enactment of this article. In addition to\ncomplying with the requirements of this section, any such risk retention\ngroup operating in this state prior to the enactment of this article\nshall, within thirty days after the effective date of this article,\ncomply with the provisions of subsection (a) of this section.\n  (j) Penalties. Any such risk retention group which violates any\nprovision of this article shall be deemed to be a licensed foreign\ninsurer for the purposes of assessing fines and penalties and the\nsuperintendent shall also have the authority to revoke such group's\nright to do business in this state.\n