58-17-2.1 Health insurance on a franchise plan.
Health insurance on a franchise plan.
Health insurance on a franchise plan is
hereby declared to be that form of health insurance issued to:
Three or more employees of any corporation, copartnership, or individual employer or any
governmental corporation, agency, or department thereof; or
Ten or more members of any trade, occupational, or professional association, or of a labor
union, or of any other association having had an active existence for at least two years
where such association or union has a constitution or bylaws and is formed in good faith
for purposes other than that of obtaining insurance; where such persons, with or without
their dependents, are issued the same form of an individual policy varying only as to
amounts and kinds of coverage applied for by such persons, under an arrangement
whereby the premiums on such policies may be paid to the insurer periodically by the
employer, with or without payroll deductions, or by the association for its members, or
by some designated person acting on behalf of such employer or association or by the
insured directly to the insurer, if permitted by the insurer. The term, employees, as used
in this section may be deemed to include the officers, managers, and employees and
retired employees of the employer and the individual proprietor or partnership.
Health insurance may be marketed on a franchise basis to members or employees of an employer,
labor union, or association. Except as provided for by § 58-18B-2, health insurance marketed on a
franchise basis may have the individual's premiums paid by the employer, labor union, or
association. Marketing a policy on a franchise basis does not exempt any policy from any applicable
requirement under this title except as provided in § 58-33-13.
Source: SL 1966, ch 111, ch 25, § 30 as added by SL 1968, ch 137; SL 2000, ch 241, §§ 1, 2.