A. A joint underwriting association is established in the department of insurance and financial institutions consisting of insurers authorized to write and engaged in writing in this state on a direct basis liability insurance, including the liability portion of multiperil policies, but not including ocean marine insurance. Every such insurer shall be a member of the association and shall remain a member as a condition of its authority to continue to transact insurance in this state.

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B. If after a hearing conducted pursuant to section 20-2201, the director determines that a voluntary plan would fail to provide coverage, the association shall provide liability insurance coverages for a designated class or classes of risks on a primary basis in this state. The association shall not be required to provide coverage available through an assigned risk plan or coverages for pollution liability, hazardous waste liability or workers’ compensation. The association may operate only on a finding by the director after a public hearing pursuant to section 20-161 that liability insurance is substantially unavailable through private insurers for a particular line.

C. If the director determines, on application of any interested party and after a public hearing, that liability insurance for a particular line is no longer substantially unavailable through private insurers, the association shall cease its underwriting operations.

D. This chapter does not prohibit an insurer from issuing or renewing a policy of liability insurance in this state. However, on a determination by the director, after a public hearing pursuant to section 20-161, that substantial adverse selection has, or will likely, result, the director may issue an order to insurers that no original policies shall thereafter be issued or that renewal policies shall be issued only if the insurer will offer the insurance to a representative sample of rating classifications, or both.