42 U.S.C. § 9674
Verified against govinfo.gov as of June 20, 2026View official text on govinfo.gov ↗
- (a)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 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:
- (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.