                                 CODE OF VIRGINIA

RISK RETENTION GROUPS NOT CHARTERED IN THIS COMMONWEALTH (§ 38.2-5103)

Risk retention groups chartered in states other than this Commonwealth and
seeking to do business as a risk retention group in this Commonwealth shall
observe and abide by the laws of this Commonwealth as follows:

1. Before offering insurance in this Commonwealth, a risk retention group shall
submit to the Commission on a form prescribed by the Commission:
			a. A statement identifying the state or states in which the risk retention
group is chartered and licensed as a liability insurance company, date of
chartering, its principal place of business, and such other information
including information on its membership, as the Commission may require to verify
that the risk retention group is qualified under the definition set forth in
this chapter;			b. A copy of its plan of operations or a feasibility study and
revisions of such plan or study submitted to its state of domicile; however, the
provision relating to the submission of a plan of operation or a feasibility
study shall not apply with respect to product liability or completed operations
liability as defined in this chapter which was offered before October 27, 1986,
by any risk retention group which had been chartered and operating for not less
than three years before such date;			c. A copy of any revision to its plan of
operation or feasibility study required by this chapter at the same time that
the revision is submitted to the Commissioner of its chartering state; and			d.
A statement of registration which designates the clerk of the Commission as its
agent for the purpose of receiving service of legal documents or process.

2. Any risk retention group doing business in this Commonwealth shall submit to
the Commission:
			a. A copy of the group&#8217;s financial statement submitted to its state of
domicile, 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 loss reserve specialist
who is qualified under criteria established by the National Association of
Insurance Commissioners;			b. A copy of each examination of the risk retention
group as certified by the commissioner or public official conducting the
examination;			c. Upon request by the Commission, a copy of any information or
document pertaining to any outside audit performed with respect to the risk
retention group; and			d. Such information as may be required to verify its
continuing qualification as a risk retention group under the definition set
forth in this chapter.

3. All premiums paid for coverages within this Commonwealth to risk retention
groups shall be subject to taxation, including the assessment set forth in
&#xA7; 38.2-400, at the same rate and subject to the same interest, fines and
penalties for nonpayment as applicable to foreign admitted insurers. Each risk
retention group shall pay the taxes for risks insured within the Commonwealth.
Further, each risk retention group shall report all premiums paid to it for
risks insured within this Commonwealth.

4. Any risk retention group, its agents and representatives, shall comply with
&#xA7; 38.2-510.

5. Any risk retention group shall comply with the provisions of &#xA7;&#xA7;
38.2-500, 38.2-501, 38.2-502, 38.2-503, 38.2-504, 38.2-506, and 38.2-512
regarding deceptive, false, or fraudulent acts or practices. However, the
provisions of this subdivision do not relieve a risk retention group from the
requirements of any other state statutes regarding deceptive, false, or
fraudulent acts or practices.

6. Any risk retention group must submit to an examination by the Commission to
determine its financial condition if the commissioner of the jurisdiction in
which the group is chartered has not initiated an examination or does not
initiate an examination within sixty days after a request by the Commission. Any
such examination shall be coordinated to avoid unjustified repetition and
conducted in an expeditious manner and in accordance with the NAIC&#8217;s
Examiner Handbook.

7. Every application form for insurance from a risk retention group and any
policy issued by a risk retention group shall contain in ten point type on the
front page and the declaration page, the following notice:
			NOTICE			This policy is issued by your risk retention group. Your risk
retention group may not be subject to all of the insurance laws and regulations
of your state. State insurance insolvency guaranty funds are not available for
your risk retention group.

8. The following acts by a risk retention group are hereby prohibited:
			a. The solicitation or sale of insurance by a risk retention group to any
person who is not eligible for membership in such group; and			b. The
solicitation or sale of insurance by, or operation of, a risk retention group
that is in a hazardous financial condition or is financially impaired.

9. No risk retention group shall be allowed to do business in this Commonwealth
if an insurance company is directly or indirectly a member or owner of such risk
retention group, other than in the case of a risk retention group all of whose
members are insurance companies.

10. The terms of any insurance policy provided by a risk retention group shall
not provide or be construed to provide insurance policy coverage prohibited
generally by the laws of this Commonwealth or declared unlawful by the Supreme
Court of Virginia. For the purpose of this subdivision, a risk retention group
shall comply with &#xA7;&#xA7; 38.2-227, 38.2-2200, 38.2-2204 and any other
applicable laws of this Commonwealth.

11. A risk retention group not chartered in this Commonwealth and doing business
in this Commonwealth shall comply with a lawful order issued in a voluntary
dissolution proceeding or in a delinquency proceeding commenced by a state
insurance commissioner or the Commission if there has been a finding of
financial impairment after an examination under this section.

HISTORY: 1987, c. 585; 1992, c. 588.