N.Y. Insurance Law § 5908: Notice and registration requirements of purchasing groups

§ 5908. Notice and registration requirements of purchasing groups. (a)

A purchasing group which intends to do business in this state shall,

prior to doing such business, furnish notice of such intention to the

superintendent. This notice shall include the following information:

(1) the state in which the group is domiciled;

(2) the principal place of business of the group;

(3) the kinds and classifications of liability insurance which the

purchasing group intends to purchase;

(4) 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;

(5) the name and chartering jurisdiction of the insurer or risk

retention group from which the purchasing group intends to purchase its

insurance; and

(6) all other states in which the group intends to do business.

(b) A purchasing group shall, as to any subsequent changes in any of

the items set forth in subsection (a) of this section, notify the

superintendent within ten days of any such change.

(c) Each purchasing group which is required to give notice pursuant to

subsection (a) of this section shall also furnish such information as

may be required by the superintendent to:

(1) verify that the entity qualifies as a purchasing group; and

(2) determine compliance with any applicable state law.

(d) A purchasing group which does business in this state shall submit

to the superintendent a statement of registration, for which a filing

fee shall be imposed in accordance with a regulation to be promulgated

by the superintendent, which statement of registration shall include a

certified power of attorney designating the superintendent as its agent

for the purpose of receiving service of legal documents or process.

(1) The power of attorney shall be accompanied by written designation

of the name and address of the officer, agent, or other person to whom

such legal documents or process shall be forwarded by the superintendent

or his deputy on behalf of such purchasing group. In the event such

designation is changed, a new certificate of designation shall be filed

with the superintendent within ten days of such change.

(2) Service of legal documents or process upon a purchasing group

pursuant to this subsection shall be made by serving the superintendent,

any deputy superintendent or any salaried employee of the department

whom the superintendent designates for such purpose with two copies

thereof and the payment of a fee of twenty dollars. The superintendent

shall forward a copy of such legal documents or process by registered or

certified mail to the purchasing group at the address given in its

written certificate of designation, and shall keep a record of all legal

documents or process so served upon him. Service of legal documents or

process so made shall be deemed made within the territorial jurisdiction

of any court in this state.

(3) The registration and designation requirement of this subsection

shall not apply in the case of a purchasing group which only purchases

insurance that was authorized under the Federal Product Liability Risk

Retention Act of 1981; and

(A) was domiciled before April first, nineteen hundred eighty-six and

is domiciled on or after October twenty-seventh, nineteen hundred

eighty-six in any state;

(B) before October twenty-seventh, nineteen hundred eighty-six,

purchased liability insurance only from an insurer licensed in any state

and since October twenty-seventh, nineteen hundred eighty-six purchases

its liability insurance only from an insurer licensed in any state; and

(C) before October twenty-seventh, nineteen hundred eighty-six, was a

purchasing group under the requirements of the federal Product Liability

Risk Retention Act of 1981.

(e) Any purchasing group which was doing business in this state prior

to the enactment of this article shall, within thirty days after the

effective date of this article, furnish notice to the superintendent

pursuant to the provisions of subsection (a) of this section and furnish

such information as may be required pursuant to subsections (b), (c) and

(d) of this section.