Maine Liability Risk Retention Act

The act authorizes and regulates two vehicles for group self-insurance: risk retention groups, which are liability insurers owned by their insured members, and purchasing groups, which buy liability coverage collectively for members engaged in similar activities. It sets separate requirements for risk retention groups chartered in the state and those operating there under another state's charter, exempts purchasing groups from certain laws restricting group purchase of insurance while imposing notice and registration duties and limits on the coverage they may buy, and requires agents and brokers placing this business to be licensed. It also grants the state insurance regulator administrative and rulemaking authority over both types of group, provides penalties for violations, and recognizes the binding effect of related federal court orders.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.