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



(1)  The bona fide trade association shall have been
formed 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 insurance
entity that the bona fide trade association may offer to its members, including
but not limited to such restrictions as clauses that reduce competition between
insurers or clauses that require a bona fide trade association to allow an
insurer to match the price or terms offered by another insurer; and



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



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



(b)  As used in this section:



"Bona fide trade association" means
an association of persons organized to promote common interests and comprised
of 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 for
purposes other than obtaining insurance;



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



(4)  Makes health insurance coverage offered through
the association available to all members regardless of any health status
related factor pertaining to such members (or individuals eligible for coverage
through a member);



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



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