Section 9674 - Purchasing groups(a) ExemptionExcept 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 discriminate1 against a purchasing group or any of its members.(b) Application of exemptionsThe 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) Agents or brokersA 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.
1So in original. Probably should be "discriminates".
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.