Section 991.1505 - Notice and prohibited acts(a) Every application form for insurance from a risk retention group and every policy issued by a risk retention group shall contain, in ten-point type on the front page and the declaration page, the following notice: NOTICE
This policy is issued by your risk retention group. Your risk retention group may not be subject to all of the insurance laws and regulations of your state. State insurance insolvency guaranty funds are not available for your risk retention group.
(b) The following acts by a risk retention group are hereby prohibited:(1) The solicitation or sale of insurance by a risk retention group to any person who is not eligible for membership in such group.(2) The solicitation or sale of insurance by or operation of a risk retention group that has been found by a court of competent jurisdiction to be in a hazardous financial condition or financially impaired.(c) No risk retention groups shall be allowed to do business in this Commonwealth if an insurance company is directly or indirectly a member or owner of such risk retention group, other than in the case of a risk retention group all of whose members are insurance companies.1921, May 17, P.L. 682, No. 284, art. XV, § 1505, added 1992, Dec. 18, P.L. 1519, No. 178, § 19, effective in 120 days.