42 U.S.C. § 9674 — Purchasing groups

FEDERAL · 42 U.S.C. · Chapter 103

Purchasing groups

Current through Pub. L. 119-102

Title 42 — The Public Health and Welfare·Ch. 103 — COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION, AND LIABILITY·Subch. IV

(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 becaus

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(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) 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.

42 U.S.C. § 9674 (Purchasing groups) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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History

(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.)