Legislation
SECTION 5907
Purchasing groups; exemption from certain laws
Insurance (ISC) CHAPTER 28, ARTICLE 59
§ 5907. Purchasing groups; exemption from certain laws. A purchasing
group and its insurer shall be subject to all applicable laws of this
state, except that a purchasing group and its insurer shall be exempt,
in regard to liability insurance for the purchasing group and any of its
members, from any law that would:
(a) prohibit the establishment of a purchasing group;
(b) make it unlawful for an insurer to provide or offer to provide
liability insurance on a basis providing, to a purchasing group or its
members, advantages, based on their loss and expense experience, not
afforded to other persons with respect to rates, policy forms, coverages
or other matters;
(c) prohibit a purchasing group or its members from purchasing
liability insurance on a group basis described in subsection (b) of this
section;
(d) prohibit a purchasing group from obtaining liability 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;
(e) require that a purchasing group must have a minimum number of
members, common ownership or affiliation, or a certain legal form;
(f) require that a certain percentage of a purchasing group must
obtain liability insurance on a group basis; or
(g) otherwise discriminate against a purchasing group or any of its
members.
group and its insurer shall be subject to all applicable laws of this
state, except that a purchasing group and its insurer shall be exempt,
in regard to liability insurance for the purchasing group and any of its
members, from any law that would:
(a) prohibit the establishment of a purchasing group;
(b) make it unlawful for an insurer to provide or offer to provide
liability insurance on a basis providing, to a purchasing group or its
members, advantages, based on their loss and expense experience, not
afforded to other persons with respect to rates, policy forms, coverages
or other matters;
(c) prohibit a purchasing group or its members from purchasing
liability insurance on a group basis described in subsection (b) of this
section;
(d) prohibit a purchasing group from obtaining liability 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;
(e) require that a purchasing group must have a minimum number of
members, common ownership or affiliation, or a certain legal form;
(f) require that a certain percentage of a purchasing group must
obtain liability insurance on a group basis; or
(g) otherwise discriminate against a purchasing group or any of its
members.