<section xmlns="http://xml.house.gov/schemas/uslm/1.0" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:dcterms="http://purl.org/dc/terms/" style="-uslm-lc:I80" id="idd8541841-406b-11eb-bd25-fd7436c081d8" identifier="/us/usc/t42/s9674"><num value="9674">§ 9674.</num><heading> Purchasing groups</heading><subsection style="-uslm-lc:I19" class="indent2 firstIndent-2" id="idd8541842-406b-11eb-bd25-fd7436c081d8" identifier="/us/usc/t42/s9674/a"><num value="a" class="bold">(a)</num><heading class="bold"> Exemption</heading><chapeau style="-uslm-lc:I11" class="indent0">Except as provided in this section, a purchasing group is exempt from the following:</chapeau><paragraph style="-uslm-lc:I12" class="indent1" id="idd8541843-406b-11eb-bd25-fd7436c081d8" identifier="/us/usc/t42/s9674/a/1"><num value="1">(1)</num><content> A State law, rule, or order which prohibits the establishment of a purchasing group.</content>
</paragraph>
<paragraph style="-uslm-lc:I12" class="indent1" id="idd8541844-406b-11eb-bd25-fd7436c081d8" identifier="/us/usc/t42/s9674/a/2"><num value="2">(2)</num><content> 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.</content>
</paragraph>
<paragraph style="-uslm-lc:I12" class="indent1" id="idd8541845-406b-11eb-bd25-fd7436c081d8" identifier="/us/usc/t42/s9674/a/3"><num value="3">(3)</num><content> 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.</content>
</paragraph>
<paragraph style="-uslm-lc:I12" class="indent1" id="idd8541846-406b-11eb-bd25-fd7436c081d8" identifier="/us/usc/t42/s9674/a/4"><num value="4">(4)</num><content> 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.</content>
</paragraph>
<paragraph style="-uslm-lc:I12" class="indent1" id="idd8541847-406b-11eb-bd25-fd7436c081d8" identifier="/us/usc/t42/s9674/a/5"><num value="5">(5)</num><content> 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.</content>
</paragraph>
<paragraph style="-uslm-lc:I12" class="indent1" id="idd8541848-406b-11eb-bd25-fd7436c081d8" identifier="/us/usc/t42/s9674/a/6"><num value="6">(6)</num><content> A State law, rule, or order which requires that a certain percentage of a purchasing group must obtain insurance on a group basis.</content>
</paragraph>
<paragraph style="-uslm-lc:I12" class="indent1" id="idd8541849-406b-11eb-bd25-fd7436c081d8" identifier="/us/usc/t42/s9674/a/7"><num value="7">(7)</num><content> 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.</content>
</paragraph>
<paragraph style="-uslm-lc:I12" class="indent1" id="idd854184a-406b-11eb-bd25-fd7436c081d8" identifier="/us/usc/t42/s9674/a/8"><num value="8">(8)</num><content> A State law, rule, or order which otherwise discriminate <ref class="footnoteRef" idref="fn003805">1</ref><note type="footnote" id="fn003805"><num>1</num> So in original. Probably should be “discriminates”.</note> against a purchasing group or any of its members.</content>
</paragraph>
</subsection>
<subsection style="-uslm-lc:I19" class="indent2 firstIndent-2" id="idd854184b-406b-11eb-bd25-fd7436c081d8" identifier="/us/usc/t42/s9674/b"><num value="b" class="bold">(b)</num><heading class="bold"> Application of exemptions</heading><chapeau style="-uslm-lc:I11" class="indent0">The exemptions specified in subsection (a) apply to the following:</chapeau><paragraph style="-uslm-lc:I12" class="indent1" id="idd854184c-406b-11eb-bd25-fd7436c081d8" identifier="/us/usc/t42/s9674/b/1"><num value="1">(1)</num><chapeau> Pollution liability insurance, and comprehensive general liability insurance which includes this coverage, provided to—</chapeau><subparagraph style="-uslm-lc:I13" class="indent2" id="idd854184d-406b-11eb-bd25-fd7436c081d8" identifier="/us/usc/t42/s9674/b/1/A"><num value="A">(A)</num><content> a purchasing group; or</content>
</subparagraph>
<subparagraph style="-uslm-lc:I13" class="indent2" id="idd854184e-406b-11eb-bd25-fd7436c081d8" identifier="/us/usc/t42/s9674/b/1/B"><num value="B">(B)</num><content> any person who is a member of a purchasing group.</content>
</subparagraph>
</paragraph>
<paragraph style="-uslm-lc:I12" class="indent1" id="idd854184f-406b-11eb-bd25-fd7436c081d8" identifier="/us/usc/t42/s9674/b/2"><num value="2">(2)</num><chapeau> The sale of any one of the following to a purchasing group or a member of the group:</chapeau><subparagraph style="-uslm-lc:I13" class="indent2" id="idd8541850-406b-11eb-bd25-fd7436c081d8" identifier="/us/usc/t42/s9674/b/2/A"><num value="A">(A)</num><content> Pollution liability insurance and comprehensive general liability coverage.</content>
</subparagraph>
<subparagraph style="-uslm-lc:I13" class="indent2" id="idd8541851-406b-11eb-bd25-fd7436c081d8" identifier="/us/usc/t42/s9674/b/2/B"><num value="B">(B)</num><content> Insurance related services.</content>
</subparagraph>
<subparagraph style="-uslm-lc:I13" class="indent2" id="idd8541852-406b-11eb-bd25-fd7436c081d8" identifier="/us/usc/t42/s9674/b/2/C"><num value="C">(C)</num><content> Management services.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection style="-uslm-lc:I19" class="indent2 firstIndent-2" id="idd8541853-406b-11eb-bd25-fd7436c081d8" identifier="/us/usc/t42/s9674/c"><num value="c" class="bold">(c)</num><heading class="bold"> Agents or brokers</heading><content><p style="-uslm-lc:I11" class="indent0">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.</p>
</content>
</subsection>
<sourceCredit id="idd8541854-406b-11eb-bd25-fd7436c081d8">(<ref href="/us/pl/96/510/tIV/s404">Pub. L. 96–510, title IV, § 404</ref>, as added <ref href="/us/pl/99/499/tII/s210/a">Pub. L. 99–499, title II, § 210(a)</ref>, formerly § 210, <date date="1986-10-17">Oct. 17, 1986</date>, <ref href="/us/stat/100/1718">100 Stat. 1718</ref>; renumbered § 210(a), <ref href="/us/pl/99/563/s11/c/1">Pub. L. 99–563, § 11(c)(1)</ref>, <date date="1986-10-27">Oct. 27, 1986</date>, <ref href="/us/stat/100/3177">100 Stat. 3177</ref>.)</sourceCredit>
</section>