§ 27-46-5 - Compulsory associations. - Rhode Island Statutes

SECTION 27-46-5

   § 27-46-5  Compulsory associations. –(a) No risk retention group shall be required or permitted to join orcontribute financially to any insurance insolvency fund, or similar mechanism,in this state, nor shall any risk retention group, or its insured or claimantsagainst its insureds, receive any benefit from any such fund for claims arisingunder the insurance policies issued by the risk retention group.

   (b) When a purchasing group obtains insurance covering itsmembers' risks from an insurer not authorized or licensed in this state or arisk retention group, none of these risks, wherever resident or located, shallbe covered by an insurance insolvency fund or similar mechanism in this state.

   (c) When a purchasing group obtains insurance covering itsmembers' risks from a member insurer of the Rhode Island insurance insolvencyfund only those risks as are subject to the insolvency fund shall be covered bythe insolvency fund.