NY Ins L § 5904 (2021)
2021 New York Laws ISC - Insurance Article 59 - Risk Retention Groups and Purchasing Groups 5904 - Risk Retention Groups Not Chartered in This State.

§  5904.  Risk  retention  groups  not chartered in this state. A risk retention group  not  chartered  and  licensed  as  a  property/casualty insurer  in  this  state,  seeking to do business or doing business as a risk retention group in this state, shall comply with the laws  of  this state, as follows:  (a)  Notice  of operations and designation of superintendent as agent. Before offering insurance in this state, such risk retention group shall submit to the superintendent:  (1) a statement identifying the state or  states  in  which  the  risk retention  group  is  chartered  and licensed as an insurance company to write liability insurance, the dates of chartering  and  licensing,  and its principal place of business;  (2)  a  copy  of  its  plan  of operation or feasibility study and all revisions of  such  plan  or  study  submitted  to  its  chartering  and licensing  state;  provided, however, that the provision relating to the submission of a plan of operation or feasibility study shall  not  apply with  respect to any kind or classification of liability insurance which was:  (A) defined in the federal Product Liability  Risk  Retention  Act  of 1981 before October twenty-seventh, nineteen hundred eighty-six; and  (B)  offered  before  such  date by any risk retention group which had been chartered and was operating for not less than  three  years  before such date; and  (3)  a  statement  of  registration,  for  which a filing fee shall be imposed in accordance  with  a  regulation  to  be  promulgated  by  the superintendent, which statement of registration shall include a power of attorney  designating the superintendent as its agent for the purpose of receiving service of process in any proceeding against it on a  contract delivered  or  issued  for delivery, or on a cause of action arising, in this state.  (A) The power of attorney shall be accompanied by written  designation of  the  name and address of the officer, agent, or other person to whom such process shall be forwarded by the superintendent or his  deputy  on behalf  of  such  risk retention group. In the event such designation is changed, a new certificate  of  designation  shall  be  filed  with  the superintendent within ten days of such change.  (B)  Service  of  process upon a risk retention group pursuant to this paragraph shall be  made  by  serving  the  superintendent,  any  deputy superintendent  or  any  salaried  employee  of  the department whom the superintendent designates for such purpose with two copies  thereof  and the payment of a fee of twenty dollars. The superintendent shall forward a  copy  of  such  process  by  registered or certified mail to the risk retention group at the address  given  in  its  written  certificate  of designation,  and  shall  keep  a  record  of  all  such process served. Service of process so made shall be deemed made within  the  territorial jurisdiction of any court in this state.  (b)  Financial condition. Any such risk retention group doing business in this state, shall submit to the superintendent:  (1) a copy of the annual financial statement submitted to the state in which the risk retention group is chartered and licensed, which shall be certified by an independent public accountant and contain a statement of opinion on loss and loss adjustment expense reserves made by a member of the American Academy of Actuaries or a qualified loss reserve specialist (under criteria established by the  National  Association  of  Insurance Commissioners):  (2)  a  copy  of  each  examination  of  the  risk  retention group as certified  by  the  commissioner  or  public  official  conducting   the examination;  (3)  upon request by the superintendent, a copy of any audit performed with respect to the risk retention group; and  (4)  such  information  as  may  be  required to verify its continuing qualification as a risk retention group.  (c) Taxation. (1) Any such risk retention group shall  be  liable  for the payment of franchise taxes and taxes on premiums and shall report to the  superintendent  the  gross  direct  premiums, less returns thereon, written on risks resident or located within this state.  Any  such  risk retention group shall be deemed to be a licensed foreign insurer for the purposes  of  taxation,  and  any applicable fines and penalties related thereto.  (2) Whenever licensed insurance  agents  or  insurance  brokers  place business  with a risk retention group, such licensee shall report to the superintendent the premiums of direct business  for  risks  resident  or located  within  this  state  which  they  have  placed  with  such risk retention group, and such licensee shall keep a  complete  and  separate record  of  all  policies  procured from each such risk retention group, which record shall be open to  examination  by  the  superintendent,  as provided  in  section  three  hundred ten of this chapter. These records shall, for each policy and each kind of insurance  provided  thereunder, include the following:  (A) the limit of liability;  (B) the time period covered;  (C) the effective date;  (D) the name of the risk retention group which issued the policy;  (E) the gross premium charged; and  (F) the amount of return premiums, if any.  (d)  Compliance  with unfair claims settlement practices law. Any such risk retention group and its agents  and  representatives  shall  comply with  the  unfair claims settlement practices provisions as set forth in section  two  thousand  six  hundred  one  of  this  chapter,  and   any regulations promulgated thereunder.  (e)  Deceptive,  false, or fraudulent acts or practices. Any such risk retention group shall comply with the deceptive, false or fraudulent act or practices  provisions  set  forth  in  article  twenty-four  of  this chapter, and any regulations promulgated thereunder.  (f) Examination regarding financial condition. Any such risk retention group  shall submit to an examination by the superintendent to determine its financial condition if the commissioner of the jurisdiction in which the group is chartered and licensed has not initiated an examination  or does  not  initiate  an examination within sixty days after a request by the superintendent. Any such examination shall be coordinated with other jurisdictions to the extent  feasible  in  order  to  avoid  unjustified repetition, and shall be conducted in an expeditious manner.  (g)  Injunctions.  Any  such risk retention group shall comply with an injunction issued by a court of competent jurisdiction upon  a  petition by  the  superintendent  that  the  risk retention group is in hazardous financial condition or financially impaired.  (h) Dissolution or article seventy-four  proceedings.  Any  such  risk retention group shall comply with any lawful order issued in a voluntary dissolution   proceeding   or  in  an  article  seventy-four  proceeding commenced by the superintendent if there has been a  finding,  after  an examination  conducted  pursuant to subsection (f) of this section, that such risk retention group is financially impaired.  (i) Operation prior to enactment  of  this  article.  In  addition  to complying with the requirements of this section, any such risk retention group  operating  in  this  state prior to the enactment of this article  shall, within thirty days after the  effective  date  of  this  article, comply with the provisions of subsection (a) of this section.  (j)  Penalties.  Any  such  risk  retention  group  which violates any provision of this article shall be  deemed  to  be  a  licensed  foreign insurer  for  the  purposes  of  assessing  fines  and penalties and the superintendent shall also have the  authority  to  revoke  such  group's right to do business in this state.