---
kind: "section"
citation: "42 U.S.C. § 9674"
title: "42"
title_heading: "The Public Health and Welfare"
number: "9674"
heading: "Purchasing groups"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/9674"
units:
  - "Chapter 103 — Comprehensive Environmental Response, Compensation, and Liability"
  - "Subchapter IV — Pollution Insurance"
---

# §9674. Purchasing groups

- (a) **Exemption—** Except as provided in this section, a [purchasing group](/usc/42/9671.md?p=4) is exempt from the following:
  - (1) A [State](/usc/42/9601.md?p=27) law, rule, or order which prohibits the establishment of a [purchasing group](/usc/42/9671.md?p=4).
  - (2) A [State](/usc/42/9601.md?p=27) law, rule, or order which makes it unlawful for an insurer to provide or offer to provide [insurance](/usc/42/9671.md?p=1) on a basis providing, to a [purchasing group](/usc/42/9671.md?p=4) or its member, advantages, based on their loss and expense experience, not afforded to other [persons](/usc/42/9601.md?p=21) with respect to rates, policy forms, coverages, or other matters.
  - (3) A [State](/usc/42/9601.md?p=27) law, rule, or order which prohibits a [purchasing group](/usc/42/9671.md?p=4) or its members from purchasing [insurance](/usc/42/9671.md?p=1) on the group basis described in paragraph (2) of this subsection.
  - (4) A [State](/usc/42/9601.md?p=27) law, rule, or order which prohibits a [purchasing group](/usc/42/9671.md?p=4) from obtaining [insurance](/usc/42/9671.md?p=1) 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](/usc/42/9601.md?p=27) law, rule, or order which requires that a [purchasing group](/usc/42/9671.md?p=4) must have a minimum number of members, common ownership or affiliation, or a certain legal form.
  - (6) A [State](/usc/42/9601.md?p=27) law, rule, or order which requires that a certain percentage of a [purchasing group](/usc/42/9671.md?p=4) must obtain [insurance](/usc/42/9671.md?p=1) on a group basis.
  - (7) A [State](/usc/42/9601.md?p=27) law, rule, or order which requires that any [insurance](/usc/42/9671.md?p=1) policy issued to a [purchasing group](/usc/42/9671.md?p=4) or any members of the group be countersigned by an [insurance](/usc/42/9671.md?p=1) agent or broker residing in that [State](/usc/42/9601.md?p=27).
  - (8) A [State](/usc/42/9601.md?p=27) law, rule, or order which otherwise discriminate[^1] against a [purchasing group](/usc/42/9671.md?p=4) or any of its members.
- (b) **Application of exemptions—** The exemptions specified in [subsection (a)](#a) apply to the following:
  - (1) [Pollution liability](/usc/42/9671.md?p=2) [insurance](/usc/42/9671.md?p=1), and comprehensive general [liability](/usc/42/9601.md?p=32) [insurance](/usc/42/9671.md?p=1) which includes this coverage, provided to—
    - (A) a [purchasing group](/usc/42/9671.md?p=4); or
    - (B) any [person](/usc/42/9601.md?p=21) who is a member of a [purchasing group](/usc/42/9671.md?p=4).
  - (2) The sale of any one of the following to a [purchasing group](/usc/42/9671.md?p=4) or a member of the group:
    - (A) [Pollution liability](/usc/42/9671.md?p=2) [insurance](/usc/42/9671.md?p=1) and comprehensive general [liability](/usc/42/9601.md?p=32) coverage.
    - (B) [Insurance](/usc/42/9671.md?p=1) related services.
    - (C) Management services.
- (c) **Agents or brokers—** A [State](/usc/42/9601.md?p=27) may require that a [person](/usc/42/9601.md?p=21) acting, or offering to act, as an agent or broker for a [purchasing group](/usc/42/9671.md?p=4) obtain a license from that [State](/usc/42/9601.md?p=27), except that a [State](/usc/42/9601.md?p=27) may not impose any qualification or requirement which discriminates against a nonresident agent or broker.

## Footnotes

[^1]: So in original. Probably should be “discriminates”.

## Source credit

(Pub. L. 96–510, title IV, § 404, as added Pub. L. 99–499, title II, § 210(a), formerly § 210, Oct. 17, 1986, 100 Stat. 1718; renumbered § 210(a), Pub. L. 99–563, § 11(c)(1), Oct. 27, 1986, 100 Stat. 3177.)