KRS 304.45-050: Purchasing groups -- Exemptions from certain laws regarding liability

insurance.

A purchasing group and its insurer or insurers shall be subject to all applicable laws of

this state, except that a purchasing group and its insurer or insurers shall be exempt from

any law regarding liability insurance for the purchasing group that would:

(1) Prohibit the establishment of a purchasing group;

(2) Make it unlawful for an insurer to provide or offer to provide to a purchasing group

or its members i nsurance on a basis that provides advantages based on the

purchasing group's loss and expense experience not afforded to other persons with

respect to rates, policy forms, coverages, or other matters;

(3) Prohibit a purchasing group or its members from pur chasing insurance on a group

basis described in subsection (2) of this section;

(4) Prohibit a purchasing group from obtaining insurance on a group basis because the

group has not been in existence for a minimum period of time or because any

member has not belonged to the group for a minimum period of time;

(5) Require that a purchasing group have a minimum number of members, common

ownership or affiliation, or certain legal form;

(6) Require that a certain percentage of a purchasing group obtain insurance on a group

basis;

(7) Otherwise discriminate against a purchasing group or any of its members; or

(8) Require that any insurance policy issued to a purchasing group or any of its

members be countersigned by an insurance agent or broker residing in this state.