Purchasing Group

  • Purchasing groups are regulated under Section § 3903 of the Federal Liability Risk Retention Act of 1986, being 15 USC 3903, as well as Section 1801(g) of the Michigan Insurance Code, being MCL 500.1801(g), which defines a purchasing group as a group which meets all of the following requirements:

    1. Has as 1 of its purposes the purchase of liability insurance on a group basis.
    2. Is composed of members whose businesses or activities are similar or related with respect to the liability to which members are exposed by virtue of a related, similar, or common business, trade, product, service, premises, or operation.
    3. Purchases insurance only for its group members and only to cover their similar or related liability exposure, as described in subparagraph (ii).
    4. Is domiciled in a state.