For which types of liability insurance are purchasing groups allowed to buy?

Purchasing groups are specifically designed to allow members with similar risk profiles to aggregate their purchasing power and obtain insurance coverage. The law permits purchasing groups to buy all types of liability insurance, thus enabling them to negotiate better terms and premiums based on their collective risk.

This broad approach ensures that various industries can participate, making it possible for purchasing groups to cover a wide range of liabilities. By focusing on liability insurance, such as general liability, professional liability, and product liability, purchasing groups can effectively manage risks that are common within their business sectors. This flexibility provides significant advantages to members, allowing them access to specialized coverage that may be difficult or expensive to obtain individually.

In contrast, other options do not fully encompass the legal provisions governing purchasing groups. For instance, the mention of health and life insurance does not align with the primary focus of purchasing groups, which is on liability. Similarly, limiting insurance types to property and auto excludes many liability coverages that purchasing groups can utilize. Therefore, the broad scope of liability insurance available to purchasing groups is the reason why this is the correct answer.