§ 27-46-7 - Purchasing groups – Exemption from certain laws.
SECTION 27-46-7
§ 27-46-7 Purchasing groups –Exemption from certain laws. – A purchasing group and its insurer or insurers shall be subject to allapplicable laws of this state, except that a purchasing group and its insureror insurers shall be exempt, in regard to liability insurance for thepurchasing group, from any law that would:
(1) Prohibit the establishment of a purchasing group;
(2) Make it unlawful for an insurer to provide or offer toprovide insurance on a basis providing, to a purchasing group or its members,advantages based on their loss and expense experience not afforded to otherpersons with respect to rates, policy forms, coverage or other matters;
(3) Prohibit a purchasing group or its members frompurchasing insurance on a group basis described in subdivision (2) of thissection;
(4) Prohibit a purchasing group from obtaining insurance on agroup basis because the group has not been in existence for a minimum period oftime or because any member has not belonged to the group for a minimum periodof time;
(5) Require that a purchasing group must have a minimumnumber of members, common ownership or affiliation, or certain legal form;
(6) Require that a certain percentage of a purchasing groupmust obtain insurance on a group basis;
(7) Discriminate against a purchasing group or any of itsmembers; or
(8) Require that any insurance policy issued to a purchasinggroup or any of its members be countersigned by an insurance agent or broker orproducer residing in this state.