42 U.S.C. § 9674 : US Code - Section 9674: Purchasing groups

Search 42 U.S.C. § 9674 : US Code - Section 9674: 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 discriminate
(!1) against a purchasing group or any of its members.
(b) Application of exemptions
The exemptions specified in subsection (a) of this section 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.