[§432D-1.5]  Bona fide trade associations.  (a) At the option of a bona fide trade association, or its designated agent, ahealth maintenance organization that sells health insurance to the bona fidetrade association shall treat the bona fide trade association and its membersas a group for the purpose of issuing a group contract; provided that:

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

(2)  The health maintenance organization shall beprohibited from restricting, in any manner, the number or types of health plansissued by another insurance entity that the bona fide trade association mayoffer to its members, including but not limited to such restrictions as clausesthat reduce competition between insurers or clauses that require a bona fidetrade association to allow an insurer to match the price or terms offered byanother 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, §3; am L 2006, c 41, §2]