15 U.S.C. § 3903 : US Code - Section 3903: Purchasing groups

    (a) Exemptions from State laws, rules, regulations, or orders
      Except as provided in this section and section 3905 of this
    title, a purchasing group is exempt from any State law, rule,
    regulation, or order to the extent that such law, rule, regulation,
    or order would - 
        (1) prohibit the establishment of a purchasing group;
        (2) make it unlawful for an insurer to provide or offer to
      provide insurance on a basis providing, to a purchasing group or
      its members, advantages, based on their loss and expense
      experience, not afforded to other persons with respect to rates,
      policy forms, coverages, or other matters;
        (3) prohibit a purchasing group or its members from purchasing
      insurance on the group basis described in paragraph (2) of this
        (4) prohibit 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) require that a purchasing group must have a minimum number
      of members, common ownership or affiliation, or a certain legal
        (6) require that a certain percentage of a purchasing group
      must obtain insurance on a group basis;
        (7) require 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; or
        (8) otherwise discriminate against a purchasing group or any of
      its members.
    (b) Scope of exemptions
      The exemptions specified in subsection (a) of this section apply
    to - 
        (1) liability insurance provided to - 
          (A) a purchasing group; or
          (B) any person who is a member of a purchasing group; and

        (2) the provision of - 
          (A) liability coverage;
          (B) insurance related services; or
          (C) management services;

      to a purchasing group or member of the group.
    (c) Licensing of agents or brokers for purchasing groups
      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
    (d) Notice to State insurance commissioners of intent to do
      (1) A purchasing group which intends to do business in any State
    shall furnish notice of such intention to the insurance
    commissioner of such State. Such notice - 
        (A) shall identify the State in which such group is domiciled;
        (B) shall specify the lines and classifications of liability
      insurance which the purchasing group intends to purchase;
        (C) shall identify the insurance company from which the group
      intends to purchase insurance and the domicile of such company;
        (D) shall identify the principal place of business of the

      (2) Such purchasing group shall notify the commissioner of any
    such State as to any subsequent changes in any of the items
    provided in such notice.
    (e) Designation of agent for service of documents and process
      A purchasing group shall register with and designate the State
    insurance commissioner of each State in which it does business as
    its agent solely for the purpose of receiving service of legal
    documents or process, except that such requirement shall not apply
    in the case of a purchasing group - 
        (1) which - 
          (A) was domiciled before April 1, 1986; and
          (B) is domiciled on and after October 27, 1986; (!1)

      in any State of the United States;
        (2) which - 
          (A) before September 25, 1981, purchased insurance from an
        insurance carrier licensed in any State; and
          (B) since September 25, 1981, purchases its insurance from an
        insurance carrier licensed in any State;

        (3) which was a purchasing group under the requirements of this
      chapter before October 27, 1986; and
        (4) as long as such group does not purchase insurance that was
      not authorized for purposes of an exemption under this chapter as
      in effect before October 27, 1986.
    (f) Purchases of insurance through licensed agents or brokers
      acting pursuant to surplus lines laws
      A purchasing group may not purchase insurance from a risk
    retention group that is not chartered in a State or from an insurer
    not admitted in the State in which the purchasing group is located,
    unless the purchase is effected through a licensed agent or broker
    acting pursuant to the surplus lines laws and regulations of such
    (g) State powers to enforce State laws
      Nothing in this chapter shall be construed to affect the
    authority of any State to make use of any of its powers to enforce
    the laws of such State with respect to which a purchasing group is
    not exempt under this chapter.
    (h) States' authority to sue
      Nothing in this chapter shall affect the authority of any State
    to bring an action in any Federal or State court.