[§432D-1.5]  Bona fide trade associations.  (a) 
At the option of a bona fide trade association, or its designated agent, a
health maintenance organization 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 a group contract; provided that:



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



(2)  The health maintenance organization 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, §3; am L 2006, c 41, §2]