20-2404. Compulsory associations
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/az/title-20/20-2404A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. No risk retention group is required or permitted to join or contribute financially to any insurance insolvency guaranty fund, or similar mechanism, in this state, and no risk retention group, or its insureds or claimants against its insureds, may receive any benefit from any fund for claims arising under the insurance policies issued by the risk retention group.
B. If a purchasing group obtains insurance covering its members' risks from an insurer that is not authorized in this state or a risk retention group, no risks wherever resident or located may be covered by any insurance guaranty fund or similar mechanism in this state.
C. If a purchasing group obtains insurance covering its members' risks from an authorized insurer, only risks resident or located in this state may be covered by the state guaranty fund.
D. A risk retention group shall participate in this state's joint underwriting associations and mandatory liability pools as provided by this title.