| (a) A purchasing group is any group that:
(1) has as one of its purposes the purchase of liability
insurance on a group basis;
(2) purchases liability insurance only for its group
members and only to cover their similar or related liability exposure;
(3) is composed of members whose businesses or activities
are similar or related with respect to the liability to which members
are exposed by any related, similar, or common business, trade, product,
service, premise, or operation; and
(4) is domiciled in any state.
(b) When a registered purchasing group purchases insurance
through a surplus lines agent, the surplus lines agent must submit
the filings required under Insurance Code §981.105 and stamping
fees directly to the stamping office.
(c) A surplus lines agent must stamp or write the words
"Purchasing Group" conspicuously on every policy, contract, or other
detailed evidence of coverage issued to a purchasing group or its
members through the surplus lines agent.
(d) A surplus lines agent may not sell insurance to
a purchasing group that is not registered with TDI. Registration may
be verified on TDI's website.
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