{"identifier":"/us/usc/t42/s9674","title":42,"num":"\u00a7\u202f9674.","heading":"Purchasing groups","text":"\u00a7\u202f9674.\nPurchasing groups\n(a)\nExemption\nExcept as provided in this section, a purchasing group is exempt from the following:\n(1) A State law, rule, or order which prohibits the establishment of a purchasing group.\n(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.\n(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.\n(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.\n(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.\n(6) A State law, rule, or order which requires that a certain percentage of a purchasing group must obtain insurance on a group basis.\n(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.\n(8) A State law, rule, or order which otherwise discriminate\n1\n1 So in original. Probably should be \u201cdiscriminates\u201d.\n(b)\nApplication of exemptions\nThe exemptions specified in subsection (a) apply to the following:\n(1) Pollution liability insurance, and comprehensive general liability insurance which includes this coverage, provided to\u2014\n(A) a purchasing group; or\n(B) any person who is a member of a purchasing group.\n(2) The sale of any one of the following to a purchasing group or a member of the group:\n(A) Pollution liability insurance and comprehensive general liability coverage.\n(B) Insurance related services.\n(C) Management services.\n(c)\nAgents or brokers\nA 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.","url":"https://projectusc.org/usc/t42/s9674.html","content":[{"t":"sec","id":"/us/usc/t42/s9674","children":[{"t":"num","text":"\u00a7\u202f9674."},{"t":"heading","text":"Purchasing groups"},{"t":"subsec","id":"/us/usc/t42/s9674/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Exemption"},{"t":"chapeau","text":"Except as provided in this section, a purchasing group is exempt from the following:"},{"t":"para","id":"/us/usc/t42/s9674/a/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" A State law, rule, or order which prohibits the establishment of a purchasing group.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s9674/a/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" 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.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s9674/a/3","children":[{"t":"num","text":"(3)"},{"t":"content","text":" 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.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s9674/a/4","children":[{"t":"num","text":"(4)"},{"t":"content","text":" 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.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s9674/a/5","children":[{"t":"num","text":"(5)"},{"t":"content","text":" 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.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s9674/a/6","children":[{"t":"num","text":"(6)"},{"t":"content","text":" A State law, rule, or order which requires that a certain percentage of a purchasing group must obtain insurance on a group basis.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s9674/a/7","children":[{"t":"num","text":"(7)"},{"t":"content","text":" 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.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s9674/a/8","children":[{"t":"num","text":"(8)"},{"t":"content","text":" A State law, rule, or order which otherwise discriminate\u202f","children":[{"t":"ref","text":"1"},{"t":"num","text":"1","tail":"\u202fSo in original. Probably should be \u201cdiscriminates\u201d."},{"t":"text","text":"\u202fSo in original. Probably should be \u201cdiscriminates\u201d.","tail":" against a purchasing group or any of its members."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t42/s9674/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Application of exemptions"},{"t":"chapeau","text":"The exemptions specified in subsection (a) apply to the following:"},{"t":"para","id":"/us/usc/t42/s9674/b/1","children":[{"t":"num","text":"(1)"},{"t":"chapeau","text":" Pollution liability insurance, and comprehensive general liability insurance which includes this coverage, provided to\u2014"},{"t":"subpara","id":"/us/usc/t42/s9674/b/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" a purchasing group; or","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s9674/b/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" any person who is a member of a purchasing group.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s9674/b/2","children":[{"t":"num","text":"(2)"},{"t":"chapeau","text":" The sale of any one of the following to a purchasing group or a member of the group:"},{"t":"subpara","id":"/us/usc/t42/s9674/b/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" Pollution liability insurance and comprehensive general liability coverage.","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s9674/b/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" Insurance related services.","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t42/s9674/b/2/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" Management services.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t42/s9674/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Agents or brokers"},{"t":"content","children":[{"t":"p","text":"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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"}]}]}