Montana Code 33-11-107. Purchasing groups — exemption from certain laws relating to group purchase of insurance
33-11-107. Purchasing groups — exemption from certain laws relating to group purchase of insurance. A purchasing group meeting the criteria established under the provisions of the federal Liability Risk Retention Act of 1986 (15 U.S.C. § 3901, et seq.) is exempt from any law of this state relating to the formation of groups for the purchase of insurance, prohibition of group purchasing, or any law that would discriminate against a purchasing group or its members. In addition, an insurer is exempt from any law of this state that prohibits providing or offering to provide to a purchasing group or its members advantages based on their loss and expense experience not afforded to other persons with respect to rates, policy forms, coverages, or other matters. A purchasing group is subject to all other applicable laws of this state.
Terms Used In Montana Code 33-11-107
- Insurance: means primary insurance, excess insurance, reinsurance, surplus line insurance, and any other arrangement for shifting and distributing risk that is determined to be insurance under the laws of this state. See Montana Code 33-11-102
- Liability: means legal liability for damages, including costs of defense, legal costs and fees, and other claims expenses, because of injuries to other persons, damage to their property, or other damage or loss to other persons resulting from or arising out of:
(i)a business, whether profit or nonprofit, trade, product, service (including professional service), premises, or operation; or
(ii)an activity of any state or local government or an agency or political subdivision of state or local government. See Montana Code 33-11-102
- Purchasing group: means a group that:
(a)has as one of its purposes the purchase of liability insurance on a group basis;
(b)purchases liability insurance only for its group members and only to cover their similar or related liability exposure, as described in subsection (7)(c);
(c)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 any related, similar, or common business, trade, product, service, premises, or operation; and
(d)is domiciled in any state. See Montana Code 33-11-102
- State: means any state of the United States or the District of Columbia. See Montana Code 33-11-102