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This entry was published on 2014-09-22
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Security funds and compulsory associations
Insurance (ISC) CHAPTER 28, ARTICLE 59
§ 5906. Security funds and compulsory associations. (a) No risk
retention group shall be required or permitted to join or contribute
financially to any insurance insolvency security fund, or similar
mechanism, in this state, nor shall any risk retention group, or its
insureds or claimants against its insureds receive any benefit from any
such fund for claims arising under the insurance policies issued by such
risk retention group.

(b) When a purchasing group obtains insurance covering its members'
risks from an insurer not authorized in this state or a risk retention
group, no such risks wherever resident or located shall be covered by
any insurance insolvency security fund or similar mechanism in this

(c) The superintendent may require risk retention groups not chartered
in this state to participate, and may exempt domestic risk retention
groups from participation, in any mechanism established or authorized
under the law of this state for the equitable apportionment among
insurers of liability insurance risks or of liability insurance losses
and expenses incurred on policies written through such mechanism, and
such risk retention groups shall submit sufficient information to the
superintendent to enable the superintendent to apportion on a
non-discriminatory basis the risk retention group's proportionate share
of such risks or of such losses and expenses.