Delivery of policy to group formed to purchase health insurance prohibited; exception.
1. Except as otherwise provided in this section, no policy of group health insurance may be delivered or issued for delivery in this state to a group which was formed for the purpose of purchasing one or more policies of group health insurance.
2. A policy of group health insurance may be delivered to a group described in subsection 1 if the Commissioner approves the issuance. The Commissioner shall not grant his approval unless he finds that:
(a) The benefits of the policy are reasonable in relation to the premiums charged; and
(b) The group to which the policy is issued is organized and operated in a fiscally sound manner.
3. Upon approval by the Commissioner, an insurer may exclude or limit the coverage in a policy issued pursuant to this section of any person as to whom evidence of insurability is not satisfactory to the insurer.
4. The provisions of this section apply to the offering in this state of a policy issued in another state.
Last modified: February 27, 2006