A risk retention group shall not:
1. Transact insurance with any person who is not eligible for membership in the risk retention group;
2. Conduct any business in this state if an insurer is directly or indirectly a member or owner of the group, unless all the members of the group are insurers;
3. Transact insurance or otherwise operate while financially impaired or in a hazardous financial condition;
4. Issue any insurance policy with terms providing, or which have been construed as providing, coverage prohibited by a specific statute of this state or declared unlawful by the highest court of this state which has rendered a judgment concerning the legality of that coverage; or
5. Join or contribute financially to the Nevada Insurance Guaranty Association, or to any similar organization or fund in this state, and the provisions of chapter 687A of NRS do not apply to a risk retention group. A risk retention group and its insureds shall not accept any benefit from such an organization or fund for claims arising out of the operation of the risk retention group.
(Added to NRS by 1987, 1332; A 1995, 1783)