ntion group, although not yet financially impaired or insolvent, is unlikely to be able to: 1. Meet obligations to policyholders with respect to known claims and reasonably anticipated claims; or 2. Pay other obligations in the normal course of business. (Added to NRS by 1987, 1328) NRS 695E.060 “Liability” defined. 1. “Liability” means legal liability for damages, including costs of defense, legal costs and fees, and other expenses for claims, because of injuries to other persons, damage to their property, or other damage or loss to those persons resulting from or arising out of any: (a) Business, whether or not conducted for profit, or any trade, product, services, whether or not professional, or any premises or operations; or (b) Activity of any state or local government, or any agency or political subdivision thereof. 2. The term does not include personal risk liability and an employer’s liability concerning its employees, other than legal liability under the Federal Employers’ Liability Act. (Added to NRS by 1987, 1328) NRS 695E.070 “Personal risk liability” defined. “Personal risk liability” means liability for damages because of injury to any person, damage to property, or other loss or damage resulting from any personal, familial or household responsibilities or activities. (Added to NRS by 1987, 1328) NRS 695E.080 “Plan of operation” defined. “Plan of operation” means an analysis of the expected activities and results of a risk retention group, including: 1. The coverages, deductibles, limits of coverage, rates and systems of rating classification for each line of insurance the group intends to offer; 2. Historical and expected loss experience of the proposed members, and national experience of similar exposures to the extent that this experience is reasonably available; 3. Pro forma financial statements and projections; 4. Appropriate opinions by a qualified, independent casualty actuary, including a determination of minimum premium or participation levels required to commence operations and to prevent a hazardous financial condition; 5. Identification of management, underwriting procedures, policies for investment and methods for managerial oversight; and 6. Such other matters as are prescribed by the Commissioner for liability insurers authorized by the insurance laws of the state in which the risk retention group is chartered. (Added to NRS by 1987, 1328) NRS 695E.090 “Product liability” defined. “Product liability” means liability for damages because of any personal injury, death, emotional harm, consequential economic damage or damage to property, including damages resulting from the loss of use of property, arising out of the manufacture, design, importation, distribution, packaging, labeling, lease or sale of a product, but does not include the liability of any person for those damages if the product involved was in the possession of that person when the incident giving rise to the claim occurred. (Added to NRS by 1987, 1329) NRS 695E.100 “Purchasing group” defined. “Purchasing group” means any group which: 1. Has as one of its purposes the purchase of liability insurance on a group basis; 2. Purchases such insurance only for its members and only to cover their similar or related exposure to liability, as described in subsection 3; 3. Is composed of members whose businesses or activities are similar or related with respect to the liability to which they are exposed by virtue of any related, similar or common business, trade, product, services, premises or operations; and 4. Is domiciled in any state. (Added to NRS by 1987, 1329) NRS 695E.110 “Risk retention group” defined. “Risk retention group” means any corporation or association with limited liability that is formed under the laws of any state, Bermuda or the Cayman Islands: 1. Whose primary activity consists of assuming and spreading all or any portion of the exposure of its members to liability; 2. Which is organized primarily to conduct the activity described in subsection 1; 3. Which: (a) Is chartered and licensed as a liability insurer and authorized to transact insurance under the laws of any state; or (b) Before January 1, 1985, was chartered or licensed and authorized to transact insurance under the laws of Bermuda or the Cayman Islands and, before that date, had certified to the Commissioner of Insurance of at least one state that it satisfied the state’s requirements for capitalization, except that such a group is considered to be a risk retention group only if it has been engaged in business continuously since that date and only for the purpose of continuing to provide insurance to cover product liability or completed operations liability; 4. Which does not exclude any person from membership in the group solely to provide for members of the group a competitive advantage over an excluded person; 5. Which has as its: (a) Members only persons who have an ownership interest in the group and who are provided insurance by the risk retention group; or (b) Sole owner an organization which has as its: (1) Members only persons who comprise the membership of the risk retention group; and (2) Owners only persons who comprise the membership of the risk retention group and who are provided insurance by the group; 6. Whose members are engaged in businesses or activities similar or related with respect to the liability to which they are exposed by virtue of any related, similar or common business, trade, product, services, premises or operations; 7. Whose activities do not include the provision of insurance other than: (a) Liability insurance for assuming and spreading all or any portion of the liability of the members of the group; and (b) Reinsurance with respect to the liability of any other risk retention group, or any member of such a group, that is engaged in a business or activity such that the other group or member meets the requirements of subsection 6 for membership in the risk retention group that provides reinsurance; and 8. The name of which includes the phrase “risk retention group.” (Added to NRS by 1987, 1329; A 1995, 1780) PURCHASING GROUPS NRS 695E.120 Requirements. A purchasing group that intends to conduct business in this state shall register with the Commissioner and: 1. Furnish notice to the Commissioner that: (a) Identifies the state in which the group is domiciled; (b) Specifies the lines and classifications of liability insurance that the purchasing group intends to purchase; (c) Identifies the insurer from which the group intends to purchase its insurance and the domicile of the insurer; (d) Identifies the principal place of business of the group; (e) Identifies all other states in which the group intends to do business; and (f) Provides such other information as the Commissioner requires to verify and determine: (1) Its qualification as a purchasing group; (2) Where the purchasing group is located; and (3) The appropriate tax treatment of the purchasing group; and 2. Appoint the Commissioner as its agent solely to receive service of legal process, and pay the fee for filing a power of attorney required by subsection 4 of NRS 680B.010, except that this subsection does not apply to a purchasing group that: (a) Was domiciled before April 1, 1986, and on and after October 27, 1986, in any state; (b) Before and after October 27, 1986, purchased its insurance from an insurer licensed in any state; (c) Was a purchasing group under the requirements of the Product Liability Risk Retention Act of 1981 before October 27, 1986; and (d) Does not

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