Ch. 11

1996 LAWS OF MARYLAND

(1)      EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPHS (2) AND (3) OF
THIS SUBSECTION, A PURCHASING GROUP IS SUBJECT TO ALL APPLICABLE LAWS OF
THE STATE.

(2)      A PURCHASING GROUP THAT MEETS THE CRITERIA ESTABLISHED
UNDER THE FEDERAL LIABILITY RISK RETENTION AMENDMENTS OF 1986 IS EXEMPT
FROM ANY LAW OF THE STATE THAT RELATES TO THE CREATION OF GROUPS FOR
THE PURCHASE OF INSURANCE, PROHIBITION OF GROUP PURCHASING, OR ANY LAW
THAT WOULD DISCRIMINATE AGAINST A PURCHASING GROUP OR ITS MEMBERS.

(3)      AN INSURER IS EXEMPT FROM ANY LAW OF THE STATE THAT
PROHIBITS PROVIDING OR OFFERING TO PROVIDE TO A PURCHASING GROUP OR ITS
MEMBERS ADVANTAGES BASED ON THEIR LOSS AND EXPENSE EXPERIENCE THAT
ARE NOT AFFORDED TO OTHER PERSONS WITH RESPECT TO RATES, POLICY FORMS,
COVERAGES, OR OTHER MATTERS.

(B)     NOTICE TO COMMISSIONER REQUIRED.

(1)      BEFORE DOING BUSINESS IN THE STATE, A PURCHASING GROUP
SHALL FURNISH NOTICE TO THE COMMISSIONER.

(2)      THE NOTICE SHALL INCLUDE:

(I)       THE STATE IN WHICH THE PURCHASING GROUP HAS ITS
DOMICILE;

(II)     THE LINES AND CLASSIFICATIONS OF LIABILITY INSURANCE
THAT THE PURCHASING GROUP INTENDS TO PURCHASE;

(III)   THE IDENTITY OF ALL STATES IN WHICH THE PURCHASING
GROUP INTENDS TO DO BUSINESS;

(IV)    THE INSURANCE COMPANY FROM WHICH THE PURCHASING
GROUP INTENDS TO PURCHASE LIABILITY INSURANCE AND THE DOMICILE OF THAT
COMPANY;

(V)     THE METHOD BY WHICH AND ANY PERSON THROUGH WHOM
LIABILITY INSURANCE WILL BE OFFERED TO PURCHASING GROUP MEMBERS
WHOSE RISKS ARE RESIDENT OR LOCATED IN THE STATE;

(VI)    THE PRINCIPAL PLACE OF BUSINESS OF THE PURCHASING
GROUP; AND

(VII)  ANY OTHER INFORMATION THAT THE COMMISSIONER
REQUIRES TO VERIFY THAT THE PURCHASING GROUP QUALIFIES AS A PURCHASING
GROUP, AS DEFINED IN § 25-101 OF THIS SUBTITLE.

(3)      WITHIN 10 DAYS OF A CHANGE IN AN ITEM SET FORTH IN
PARAGRAPH (2) OF THIS SUBSECTION, THE PURCHASING GROUP SHALL NOTIFY THE
COMMISSIONER OF THE CHANGE IN WRITING.

(C)     STATEMENT OF REGISTRATION REQUIRED.

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