§ 9674 - Purchasing groups

CHAPTER 103— COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION, AND LIABILITY › SUBCHAPTER IV— POLLUTION INSURANCE

(a) Except as provided in this section, a purchasing group is exempt from the following:

(a)(1) A State law, rule, or order which prohibits the establishment of a purchasing group.

(a)(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.

(a)(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.

(a)(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.

(a)(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.

(a)(6) A State law, rule, or order which requires that a certain percentage of a purchasing group must obtain insurance on a group basis.

(a)(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.

(a)(8) A State law, rule, or order which otherwise discriminate [Fn: So in original. Probably should be “discriminates”.] against a purchasing group or any of its members.

(b) The exemptions specified in subsection (a) apply to the following:

(b)(1) Pollution liability insurance, and comprehensive general liability insurance which includes this coverage, provided to—

(b)(1)(A) a purchasing group; or

(b)(1)(B) any person who is a member of a purchasing group.

(b)(2) The sale of any one of the following to a purchasing group or a member of the group:

(b)(2)(A) Pollution liability insurance and comprehensive general liability coverage.

(b)(2)(B) Insurance related services.

(b)(2)(C) Management services.

(c) 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.