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United States Code Title 42 — The Public Health and Welfare

§ 9674. Purchasing groups

§ 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 11  So in original. Probably should be “discriminates”. So in original. Probably should be “discriminates”. 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.