Pennsylvania Statutes Title 40 P.S. Insurance § 991.1506. Guaranty funds and compulsory associations

(a) No risk retention group shall be required or permitted to join or contribute financially to any insurance insolvency guaranty fund or similar mechanism in this Commonwealth, nor shall any risk retention group or its insureds or claimants against its insureds receive any benefit from any such fund for claims arising under the insurance policies issued by such risk retention group.

(b) When a purchasing group obtains insurance covering its members' risks from an insurer not admitted in this Commonwealth or from a risk retention group, no such risks, wherever resident or located, shall be covered by any insurance guaranty fund or similar mechanism in this Commonwealth.

(c) When a purchasing group obtains insurance covering its members' risks from an admitted insurer, only covered claims as defined in the act of November 25, 1970 (P.L. 716, No. 232), known as “The Pennsylvania Insurance Guaranty Association Act,”  1 shall be covered by the State guaranty fund.

(d) The department may require risk retention groups not chartered in this Commonwealth to participate and may exempt domestic risk retention groups from participation in any mechanism established or authorized under the laws of this Commonwealth for the equitable apportionment among insurers of liability insurance losses and expenses incurred on policies written through such mechanism, and such risk retention groups shall submit sufficient information to the department to enable the department to apportion on a nondiscriminatory basis the risk retention group's proportionate share of such losses and expenses.