Sec. 404. PURCHASING GROUPS
435 words·~2 min read·
/statute-compilations/comps-886/sec-404A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
## SEC. 404 PURCHASING GROUPS ###
(a)Exemption 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 discriminate46 against a purchasing group or any of its members. 46So in law. Probably should be “discriminates”. ###
(b)Application of Exemptions 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)Agents or Brokers 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. **[**[42 U.S.C. 9674](/us/usc/t42/s9674)**]**
Connectionstraces to 1
Traces to 1 document
U.S. Code
Citation graph
cites case law
Sec. 404
PURCHASING GROUPS
Cites 1Cited by 0 across 0 sources