20-2324

20-2324. Bona fide associations;
definition

A. On or before January 1 of each year, every association that qualifies as a bona
fide association shall file a statement with the director that certifies that the
association:

1. Has been in active existence for at least five years.

2. Has been formed and maintained in good faith for purposes other than obtaining
insurance and does not condition membership in the association on the purchase of
insurance that is sponsored by the association.

3. Has a constitution and bylaws.

4. Insures at least twenty-five members, employees or employees of members of the
association for the benefit of persons other than the association or its officers or
trustees.

5. Does not condition membership in the association on any health status-related
factor relating to an individual, including an employee of an employer or a dependent of
an employee, and clearly states this in all membership and application materials.

6. Makes health benefits plans offered through the association available to all
members regardless of any health status-related factor relating to any member of the
association or individual eligible for coverage through a member and clearly states this
in all membership and application materials.

7. Does not make health benefits plans offered through the association available
other than in connection with a member of the association and clearly states this in all
membership and application materials.

B. The requirements of section 20-2304, subsection A shall not apply to health
benefits plans offered by an accountable health plan if the accountable health plan makes
this coverage available in the small group market only through one or more bona fide
associations.

C. As used in this section, the term "employees" shall be deemed to include retired
employees.