§ 9674. Purchasing groups

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(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 discriminate 1 against a purchasing group or any of its members.

(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.

(Pub. L. 96–510, title IV, § 404, as added Pub. L. 99–499, title II, § 210(a), formerly § 210, Oct. 17, 1986, 100 Stat. 1718; renumbered § 210(a), Pub. L. 99–563, § 11(c)(1), Oct. 27, 1986, 100 Stat. 3177.)

Connections2 cite this

Cited by 2 sections

statutes-at-large

Public Law 99–498
To reauthorize and revise the Higher Education Act of 1965, and for other purposes

statute-compilations

Sec. 404
PURCHASING GROUPS

6 references not yet in our index

1
Pub. L. 96–510, title IV, § 404
Pub. L. 99–499, title II, § 210(a)
100 Stat. 1718
Pub. L. 99–563, § 11(c)(1)
100 Stat. 3177

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§ 9674

Purchasing groups

Stat. Comp.×1

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Cite1

Pub. L.Pub. L. 96–510, title IV, § 404

Pub. L.Pub. L. 99–499, title II, § 210(a)

Stat.100 Stat. 1718

Pub. L.Pub. L. 99–563, § 11(c)(1)

Cites 6 · showing 5Cited by 2 across 2 sources