§ 3905. — Clarification concerning permissible State authority.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC3905]
TITLE 15--COMMERCE AND TRADE
CHAPTER 65--LIABILITY RISK RETENTION
Sec. 3905. Clarification concerning permissible State authority
(a) No exemption from State motor vehicle no-fault and motor vehicle
financial responsibility laws
Nothing in this chapter shall be construed to exempt a risk
retention group or purchasing group authorized under this chapter from
the policy form or coverage requirements of any State motor vehicle no-
fault or motor vehicle financial responsibility insurance law.
(b) Applicability of exemptions
The exemptions provided under this chapter shall apply only to the
provision of liability insurance by a risk retention group or the
purchase of liability insurance by a purchasing group, and nothing in
this chapter shall be construed to permit the provision or purchase of
any other line of insurance by any such group.
(c) Prohibited insurance policy coverage
The terms of any insurance policy provided by a risk retention group
or purchased by a purchasing group shall not provide or be construed to
provide insurance policy coverage prohibited generally by State statute
or declared unlawful by the highest court of the State whose law applies
to such policy.
(d) State authority to specify acceptable means of demonstrating
financial responsibility
Subject to the provisions of section 3902(a)(4) of this title
relating to discrimination, nothing in this chapter shall be construed
to preempt the authority of a State to specify acceptable means of
demonstrating financial responsibility where the State has required a
demonstration of financial responsibility as a condition for obtaining a
license or permit to undertake specified activities. Such means may
include or exclude insurance coverage obtained from an admitted
insurance company, an excess lines company, a risk retention group, or
any other source regardless of whether coverage is obtained directly
from an insurance company or through a broker, agent, purchasing group,
or any other person.
(Pub. L. 97-45, Sec. 6, as added Pub. L. 99-563, Sec. 8(c), Oct. 27,
1986, 100 Stat. 3175.)
Section Referred to in Other Sections
This section is referred to in section 3903 of this title.
