§ 9674. Purchasing groups

• (a) Except as provided in this section, a purchasing group is exempt from the following:
  • (1) A State law, rule, or order which prohibits the establishment of a purchasing group.
  • (2) A State law, rule, or order which makes it unlawful for an insurer to provide or offer to provide insurance on a basis providing, to a purchasing group or its member, advantages, based on their loss and expense experience, not afforded to other persons with respect to rates, policy forms, coverages, or other matters.
  • (3) A State law, rule, or order which prohibits a purchasing group or its members from purchasing insurance on the group basis described in paragraph (2) of this subsection.
  • (4) A State law, rule, or order which prohibits a purchasing group from obtaining insurance on a group basis because the group has not been in existence for a minimum period of time or because any member has not belonged to the group for a minimum period of time.
  • (5) A State law, rule, or order which requires that a purchasing group must have a minimum number of members, common ownership or affiliation, or a certain legal form.
  • (6) A State law, rule, or order which requires that a certain percentage of a purchasing group must obtain insurance on a group basis.
  • (7) A State law, rule, or order which requires that any insurance policy issued to a purchasing group or any members of the group be countersigned by an insurance agent or broker residing in that State.
  • (8) A State law, rule, or order which otherwise discriminate 1 1 So in original. Probably should be “discriminates”. against a purchasing group or any of its members.
• (b) The exemptions specified in subsection (a) apply to the following:
  • (1) Pollution liability insurance, and comprehensive general liability insurance which includes this coverage, provided to—
    • (A) a purchasing group; or
    • (B) any person who is a member of a purchasing group.
  • (2) The sale of any one of the following to a purchasing group or a member of the group:
    • (A) Pollution liability insurance and comprehensive general liability coverage.
    • (B) Insurance related services.
    • (C) Management services.
• (c) A State may require that a person acting, or offering to act, as an agent or broker for a purchasing group obtain a license from that State, except that a State may not impose any qualification or requirement which discriminates against a nonresident agent or broker.