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:
- Has as 1 of its purposes the purchase of liability insurance on a group basis.
- 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.
- Purchases insurance only for its group members and only to cover their similar or related liability exposure, as described in subparagraph (ii).
- Is domiciled in a state.