Purchasing Groups are characterized by which of the following traits?

Purchasing Groups are specifically designed to provide liability insurance for their members, who share similar risks. The primary function of these groups is to acquire insurance coverage on behalf of their members, enabling them to pool their resources and benefit from collective bargaining. By doing so, members can often secure more favorable terms or lower premiums than they might achieve individually.

These groups are formed to meet specific insurance needs that are often underserved by traditional insurers due to the nature of the risks involved. Thus, the focus is not just on individual policies but on crafting a collective approach to liability risks, making the option that describes their function of acquiring insurance for members with similar risks the most appropriate choice.

The other options do not accurately reflect the unique role and operation of Purchasing Groups. They do not function as licensed insurers themselves, nor do they sell coverage on an individual basis, which distinguishes their purpose from other market providers. Additionally, while they may operate in multiple states, their defining characteristic is the similarity of risks among members rather than state exclusivity.