Federal · Title 42 — Public Health and Welfare

42 U.S.C. § 9674: Purchasing groups

Civil

What this law says, in plain English

This statute defines what state laws prohibiting or restricting purchasing groups for insurance are preempted. It allows states to license insurance agents but prohibits discriminatory requirements against nonresident agents.

Read the full statutory text
A State law, rule, or order which prohibits the establishment of a purchasing group. 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 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 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 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 State law, rule, or order which requires that a certain percentage of a purchasing group must obtain insurance on a group basis. 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 State law, rule, or order which otherwise discriminate 1 against a purchasing group or any of its members. 1 So in original. Probably should be “discriminates”. a purchasing group; or any person who is a member of a purchasing group. Pollution liability insurance and comprehensive general liability coverage. Insurance related services. Management services. 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.

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This page is legal information, not legal advice. Code text is sourced from official publications and may lag amendments — always confirm at the official source linked above. Plain-English summaries and relationship data are AI-derived and reviewed on an ongoing basis; verify with a licensed attorney before acting.