Current through Register Vol. 46, No. 39, September 25, 2024
In this Part, the following definitions shall apply:
(a) Doing an insurance business has the
meaning ascribed to it by section
1101 of the
Insurance Law.
(b) Doing business
in this State includes, with respect to a purchasing group, where there is:
(1) a member which has a risk resident or
located in this State;
(2) any
solicitation, negotiation, issuance or delivery in this State of a policy by,
to or on behalf of such group or any of its members; or
(3) an office of such group in this
State.
(c) Liability
means legal liability for damages (including costs of defense, legal costs and
fees, and other claims expenses) because of injuries to other persons, damage
to their property, or other damage or loss to such other persons resulting from
or arising out of:
(1) any business (whether
profit or nonprofit), trade, product, services (including professional
services), premises or operations; or
(2) any activity of any state or local
government, or any agency or political subdivision thereof; and does not
include personal risk liability and an employer's liability with respect to its
employees other than legal liability under the Federal Employers' Liability Act
(45
USC 51 et seq.).
(d) Personal risk liability means liability
for damages because of injury to any person, damage to property, or other loss
or damage resulting from any personal, familial or household responsibilities
or activities, rather than from responsibilities or activities described in
paragraphs (c)(1)-(2) of this section.
(e) Policy means any policy, contract,
certificate or evidence of insurance, or rider or endorsement
thereto.
(f) Purchasing group means
any group, formed pursuant to the LRRA, which:
(1) has as one of its purposes the purchase
of liability insurance on a group basis;
(2) purchases such insurance only for its
group members and only to cover their similar or related liability exposure, as
described in paragraph (3) of this subdivision;
(3) is composed of members whose businesses
or activities are similar or related with respect to the liability to which
members are exposed by virtue of any related, similar or common business,
trade, product, services, premises or operations; and
(4) is domiciled in any state.
(g) Risk retention group means any
corporation or other limited liability association, formed pursuant to the
LRRA:
(1) whose primary activity consists of
assuming and spreading all, or any portion, of the liability exposure of its
group members;
(2) which is
organized for the primary purpose of conducting the activity described under
paragraph (1) of this subdivision;
(3) which is:
(i) chartered and licensed as a liability
insurance company and authorized to engage in the business of insurance under
the laws of any state; or
(ii)
before January 1, 1985, was chartered or licensed and authorized to engage in
the business of insurance under the laws of Bermuda or the Cayman Islands and,
before such date, had certified to the insurance commissioner of at least one
state that it satisfied the capitalization requirements of such, state, except
that any such group shall be considered to be a risk retention group only if it
has been engaged in business continuously since such date and only for the
purpose of continuing to provide insurance to cover product liability or
completed operations liability;
(4) which does not exclude any person from
membership in the group solely to provide for members of such a group a
competitive advantage over such a person;
(5) which:
(i) has as its owners only persons who
comprise the membership of the risk retention group and who are provided
insurance by such group; or
(ii)
has as its sole owner an organization which has as its members only persons who
comprise the membership of the risk retention group, and which organization has
as its owners only persons who comprise the membership of the risk retention
group and who are provided insurance by such group;
(6) whose members are engaged in businesses
or activities similar or related with respect to the liability of which such
members are exposed by virtue of any related, similar or common business,
trade, product, services, premises or operations;
(7) whose activities do not include the
provision of insurance other than:
(i)
liability insurance for assuming and spreading all or any portion of the
liability of its group members; and
(ii) reinsurance with respect to the
liability of any other risk retention group (or any member of such other group)
which is engaged in businesses or activities which meet the requirement
described in paragraph (6) of this subdivision for membership in the risk
retention group which provides such reinsurance; and
(8) the name of which includes the phrase
"Risk Retention Group."
(h) State means any state of the United
States or the District of Columbia.
(i) Unauthorized insurer means, for purposes
of this Part, any insurer which is not:
(1)
an authorized insurer, as that term is defined in section
107 of the
Insurance Law; or
(2) a risk
retention group chartered and licensed in a state.
(j) All other terms used herein shall have
the same meanings ascribed to them in section
107 of the
Insurance Law. On and after December 10, 1988, all other terms used herein
shall have the same meanings ascribed to them in section
107 of the
Insurance Law and section
5902 of the
Insurance Law. Where section
107 of the
Insurance Law and section
5902 of the
Insurance Law provide for different meanings, section
5902 of the
Insurance Law shall govern.
