What is the definition of 'purchasing group'?

A purchasing group is specifically defined as an entity formed for the purpose of purchasing liability insurance under the Risk Retention Amendments. This type of group is a collective formed by individuals or organizations with similar liability risks and needs. The primary objective of a purchasing group is to provide its members with more favorable insurance rates and better coverage options through collective purchasing power.

Purchasing groups operate within a framework that allows them to pool their resources and share risks, leading to potential cost savings and enhanced bargaining power when negotiating insurance policies. This concept is particularly relevant for liability insurance, as it enables members to address their unique exposure while benefitting from the strength of a larger collective.

The other options relate to various forms of insurance purchasing or coverage but do not accurately capture the essence of a purchasing group defined in the context of the surplus lines market and the Risk Retention Amendments. Thus, B precisely identifies what a purchasing group is and its function in the insurance landscape.