A. No risk retention group shall be required or permitted to join or contribute financially to the Illinois Insurance Guaranty Fund, or any other plan, pool, association or guaranty or insolvency fund or any 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 or any such plan, pool, association or guaranty or insolvency 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 an insurance guaranty fund or similar mechanism in this State.

liability insurance on a group basis;

members and only to cover their similar or related liability exposure, as described in paragraph (c) of this subsection (10);

activities are similar or related with respect to the liability to which members are exposed by virtue of any related, similar, or common business, trade, product, services, premises, or operations; and

spreading all, or any portion, of the liability exposure of its group members;

conducting the activity described under paragraph (a) of this subsection (11);

insurance company and authorized to engage in the business of insurance under the laws of any state; 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 commissioner 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 purposes 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 before the date of the enactment of the Risk Retention Act of 1986);

in the group solely to provide for members of such a group a competitive advantage over such a person;

only persons who comprise the membership of the risk retention group and who are provided insurance by such group; or

indirectly) an organization which:

comprise the membership of the risk retention group; and

comprise the membership of the risk retention group and who are provided insurance by such group;

activities similar or related with respect to the liability of which such members are exposed by virtue of any related, similar, or common business, trade, product, services, premises, or operations;

insurance other than:

spreading all or any portion of the liability of its group members; and

any other risk retention group (or any members of such other group) which is engaged in businesses or activities so that such group or member meets the requirement described in paragraph (f) of this subsection (11) for membership in the risk retention group which provides such reinsurance; and

Retention Group". See Illinois Compiled Statutes 215 ILCS 5/123B-2 State: means any state of the United States or the District of Columbia. See Illinois Compiled Statutes 215 ILCS 5/123B-2      C. When a purchasing group obtains insurance covering its members’ risks from an authorized insurer, only risks resident or located in this State shall be covered by the State guaranty fund subject to the provisions of Article XXXIV.   Previous section Next section    Article VIIB Contents