[§431:10A-604]  Bona fide tradeassociations.  (a)  At the option of a bona fide trade association, or itsdesignated agent, an insurer that sells health insurance to the bona fide tradeassociation shall treat the bona fide trade association and its members as agroup for the purpose of issuing group disability insurance; provided that:

(1)  The bona fide trade association shall have beenformed for purposes other than obtaining insurance;

(2)  The insurer shall be prohibited from restricting,in any manner, the number or types of health plans issued by another insuranceentity that the bona fide trade association may offer to its members, includingbut not limited to such restrictions as clauses that reduce competition betweeninsurers or clauses that require a bona fide trade association to allow aninsurer to match the price or terms offered by another insurer; and

(3)  Each member of the bona fide trade associationshall not be required to be insured under the group policy;

and provided further that this section shall beinapplicable if less than two persons from the bona fide trade association seekto be insured under the group policy.

(b)  As used in this section:

"Bona fide trade association" meansan association of persons organized to promote common interests and comprisedof persons engaged in a business, trade, or profession that:

(1)  Has been actively in existence for five years;

(2)  Has been formed and maintained in good faith forpurposes other than obtaining insurance;

(3)  Does not condition membership in the associationon any health status related factor pertaining to an individual (including anemployee of an employer or a dependent of an employee);

(4)  Makes health insurance coverage offered throughthe association available to all members regardless of any health statusrelated factor pertaining to such members (or individuals eligible for coveragethrough a member);

(5)  Does not make health insurance coverage offeredthrough the association available other than in connection with a member of theassociation; and

(6)  Meets such additional requirements as may beimposed under state law. [L 2004, c 118, §1; am L 2006, c 41, §2]