20-2407. Notice and registration requirements of purchasing groups

A. A purchasing group which intends to do business in this state, before doing business, shall furnish notice to the director which:

1. Identifies the state in which the group is domiciled.

2. Specifies the lines and classifications of liability insurance which the purchasing group intends to purchase.

3. Specify the method by which, and the person or persons, if any, through whom, insurance will be offered to its members whose risks are resident or located in this state.

4. Identifies the principal place of business of the group.

5. Provides other information as may be required by the director to verify that the purchasing group meets the criteria under section 20-2401, paragraph 9.

B. The purchasing group shall register with and designate the director as its agent solely for the purpose of receiving service of legal documents of process. The director shall determine the filing fee. This requirement does not apply in the case of a purchasing group:

1. Which in any state both:

(a) Was domiciled before April 1, 1986.

(b) Is domiciled on October 27, 1986 in any state.

2. Which both:

(a) Before October 27, 1986 purchased insurance from an insurance carrier licensed in any state.

(b) Since October 27, 1986 purchased its insurance from an insurance carrier licensed in any state.

3. Which was a purchasing group under the requirements of the product liability risk retention act of 1981 (15 United States Code section 3901) before October 27, 1986.

4. Which does not purchase insurance that was not authorized for purposes of an exemption under the product liability risk retention act of 1981 (15 United States Code section 3901), in effect before October 27, 1986.

C. Any purchasing group which was doing business in this state before the effective date of this chapter, within thirty days after the effective date of this chapter, shall furnish notice to the director pursuant to subsection A and furnish information required pursuant to subsection B.