N.Y. Insurance Law 5913 – Financial responsibility
§ 5913. Financial responsibility. Except as provided in sections three hundred eleven and three hundred seventy of the vehicle and traffic law, wherever pursuant to the laws of this state or any political subdivision of this state a demonstration of financial responsibility is required as a condition for obtaining a license or permit to undertake specified activities, if any such requirement may not be satisfied by obtaining insurance coverage from an insurer not authorized to do business in this state, such requirement may not be satisfied by purchasing insurance from a risk retention group not chartered in this state. Every insurance policy issued by a risk retention group not chartered in this state pursuant to sections three hundred eleven and three hundred seventy of the vehicle and traffic law shall contain the notice set forth in section five thousand nine hundred five of this article.
Terms Used In N.Y. Insurance Law 5913
- Insurance: means primary insurance, excess insurance, reinsurance, excess line insurance, and any other arrangement for shifting and distributing risk which is determined to be insurance under the laws of this state. See N.Y. Insurance Law 5902
- Risk retention group: means any corporation or other limited liability association formed pursuant to the federal liability risk retention act of 1986:
(1) whose primary activity consists of assuming and spreading all, or any portion, of the liability exposure of its group members;
(2) which is organized for the primary purpose of conducting the activity described under paragraph one of this subsection;
(3) which:
(A) is chartered and licensed as a liability insurance company and authorized to engage in the business of insurance under the laws of any state; or
(B) before January first, nineteen hundred eighty-five, 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 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 purpose of continuing to provide insurance to cover product liability or completed operations liability;
(4) which does not exclude any person from membership in the group solely to provide for members of such a group a competitive advantage over such a person;
(5) which:
(A) has as its owners only persons who comprise the membership of the risk retention group and who are provided insurance by such group; or
(B) 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;
(6) whose members are engaged in businesses or 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;
(7) whose activities do not include the provision of insurance other than:
(A) liability insurance for assuming and spreading all or any portion of the liability of its group members; and
(B) reinsurance with respect to the liability of any other risk retention group (or any member of such other risk retention group) which is engaged in businesses or activities which meet the requirement described in paragraph six of this subsection for membership in the risk retention group which provides such reinsurance; and
(8) the name of which includes the phrase "risk retention group". See N.Y. Insurance Law 5902 - State: means any state of the United States or the District of Columbia. See N.Y. Insurance Law 5902