Sec 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.