42 U.S.C. § 9671 — Definitions

Page 7817 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 9673 1986 Amendment note set out under section 9601 of this title and Tables. CODIFICATION Section was enacted as part of the Superfund Amend- ments and Reauthorization Act of 1986, and not as part of the Comprehensive Environmental Response, Com- pensation, and Liability Act of 1980 which comprises this chapter. SUBCHAPTER IV—POLLUTION INSURANCE § 9671. Definitions As used in this subchapter— (1) Insurance The term ‘‘insurance’’ means primary insur- ance, excess insurance, reinsurance, surplus lines insurance, and any other arrangement for shifting and distributing risk which is de- termined to be insurance under applicable State or Federal law. (2) Pollution liability The term ‘‘pollution liability’’ means liabil- ity for injuries arising from the release of haz- ardous substances or pollutants or contami- nants. (3) Risk retention group The term ‘‘risk retention group’’ means any corporation or other limited liability associa- tion taxable as a corporation, or as an insur- ance company, formed under the laws of any State— (A) whose primary activity consists of as- suming and spreading all, or any portion, of the pollution liability of its group members; (B) which is organized for the primary pur- pose of conducting the activity described under subparagraph (A); (C) which is chartered or licensed as an in- surance company and authorized to engage in the business of insurance under the laws of any State; and (D) which does not exclude any person from membership in the group solely to pro- vide for members of such a group a competi- tive advantage over such a person. (4) Purchasing group The term ‘‘purchasing group’’ means any group of persons which has as one of its pur- poses the purchase of pollution liability insur- ance on a group basis. (5) State The term ‘‘State’’ means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, Amer- ican Samoa, the Virgin Islands, the Common- wealth of the Northern Marianas, and any other territory or possession over which the United States has jurisdiction. (Pub. L. 96–510, title IV, § 401, as added Pub. L. 99–499, title II, § 210(a), formerly § 210, Oct. 17, 1986, 100 Stat. 1716; renumbered § 210(a), Pub. L. 99–563, § 11(c)(1), Oct. 27, 1986, 100 Stat. 3177.) Statutory Notes and Related Subsidiaries STATE POWERS AND AUTHORITIES UNDER RISK RETENTION AMENDMENTS OF 1986 Pub. L. 99–499, title II, § 210(b), as added by Pub. L. 99–563, § 11(c)(1), Oct. 27, 1986, 100 Stat. 3177, provided that: ‘‘For purposes of subsection (a) of this section [enacting this subchapter], the powers and authorities of States addressed by the Risk Retention Amendments of 1986 [Pub. L. 99–563, see Short Title of 1986 Amend- ment note set out under section 3901 of Title 15, Com- merce and Trade] are in addition to those of this Act [see Short Title of 1986 Amendment note set out under section 9601 of this title].’’ § 9672. State laws; scope of subchapter (a) State laws Nothing in this subchapter shall be construed to affect either the tort law or the law gov- erning the interpretation of insurance contracts of any State. The definitions of pollution liabil- ity and pollution liability insurance under any State law shall not be applied for the purposes of this subchapter, including recognition or qualification of risk retention groups or pur- chasing groups. (b) Scope of subchapter The authority to offer or to provide insurance under this subchapter shall be limited to cov- erage of pollution liability risks and this sub- chapter does not authorize a risk retention group or purchasing group to provide coverage of any other line of insurance. (Pub. L. 96–510, title IV, § 402, as added Pub. L. 99–499, title II, § 210(a), formerly § 210, Oct. 17, 1986, 100 Stat. 1716; renumbered § 210(a), Pub. L. 99–563, § 11(c)(1), Oct. 27, 1986, 100 Stat. 3177.) § 9673. Risk retention groups (a) Exemption Except as provided in this section, a risk re- tention group shall be exempt from the fol- lowing: (1) A State law, rule, or order which makes unlawful, or regulates, directly or indirectly, the operation of a risk retention group. (2) A State law, rule, or order which requires or permits a risk retention group to partici- pate in any insurance insolvency guaranty as- sociation to which an insurer licensed in the State is required to belong. (3) A State law, rule, or order which requires any insurance policy issued to a risk retention group or any member of the group to be countersigned by an insurance agent or broker residing in the State. (4) A State law, rule, or order which other- wise discriminates against a risk retention group or any of its members. (b) Exceptions (1) State laws generally applicable Nothing in subsection (a) shall be construed to affect the applicability of State laws gen- erally applicable to persons or corporations. The State in which a risk retention group is chartered may regulate the formation and op- eration of the group. (2) State regulations not subject to exemption Subsection (a) shall not apply to any State law which requires a risk retention group to do any of the following: (A) Comply with the unfair claim settle- ment practices law of the State. (B) Pay, on a nondiscriminatory basis, ap- plicable premium and other taxes which are