§ 991.1502. Definitions
Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 40 P.S. Insurance
40 P.S. § 991.1502
§ 991.1502. Definitions
As used in this article the following words and phrases shall have the meanings given to them in this section:
“Admitted insurer.” An insurer with a valid certificate of authority to do insurance business in this Commonwealth.
“Commissioner.” The Insurance Commissioner of the Commonwealth.
“Completed operations liability.” Liability arising out of the installation, maintenance or repair of any product at a site which is not owned or controlled by:
but shall include liability for activities which are completed or abandoned before the date of the occurrence giving rise to the liability.
“Department.” The Insurance Department of the Commonwealth.
“Doing business.” Those acts which constitute the doing of insurance business in this Commonwealth as set forth in section 208(b) of the act of May 17, 1921 (P.L. 789, No. 285), known as “The Insurance Department Act of one thousand nine hundred and twenty-one,”1 except that risk retention groups and purchasing groups are not doing business when responding to a request for coverage received directly from a Pennsylvania resident and not as a result of solicitation.
“Domicile.” For purposes of determining the state in which a purchasing group is domiciled, the term means the following:
“Eligible surplus lines insurer.” A nonadmitted insurer doing business in this Commonwealth in conformance with Article XVI.2
“Hazardous financial condition.” A condition in which, based on its present or reasonably anticipated financial condition, a risk retention group, although not yet financially impaired or insolvent, is unlikely to be able:
“Insurance.” Primary insurance, excess insurance, reinsurance, surplus lines insurance and any other arrangement for shifting and distributing risk which is determined to be insurance under the laws of this Commonwealth.
“Liability.”
“Nonadmitted insurer.” An insurer that does not have a certificate of authority to do insurance business in this Commonwealth. The term includes insurance exchanges authorized under laws of various states.
“Personal risk liability.” A 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 referred to in the definition of “liability.”
“Plan of operation or a feasibility study.” An analysis which presents the expected activities and results of a risk retention group, including, at a minimum, all of the following:
“Product liability.” Liability for damages because of any personal injury, death, emotional harm, consequential economic damage or property damage (including damages resulting from the loss of use of property) arising out of the manufacture, design, importation, distribution, packaging, labeling, lease or sale of a product. The term does not include the liability of any person for these damages if the product involved was in the possession of such a person when the incident giving rise to the claim occurred.
“Purchasing group.” Any group which:
“Risk retention group.” Any corporation or other limited liability association:
(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 department 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, as such terms were defined in the Product Liability Risk Retention Act of 1981 (Public Law 97-45, 95 Stat. 949), before the date of the enactment of the Risk Retention Amendments of 1986 (Public Law 99-563, 100 Stat. 3170);
(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 the risk retention group;
(ii) reinsurance with respect to the liability of any other risk retention group (or any members of such other risk retention group) which is engaged in businesses or activities so that the group or member meets the requirement described in paragraph (6) for membership in the risk retention group which provides such reinsurance; and
Credits
1921, May 17, P.L. 682, No. 284, art. XV, § 1502, added 1992, Dec. 18, P.L. 1519, No. 178, § 19, effective in 120 days.
40 P.S. § 991.1502, PA ST 40 P.S. § 991.1502
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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