Coverage and Issuance Requirements to Bona Fide Associations

(a) A health carrier that issues a health benefit plan to a bona fide association may refuse to provide coverage to all members, and dependents of members if dependent coverage is offered, of a bona fide association in accordance with the health carrier's underwriting standards and criteria. However, on issuance to a bona fide association, each carrier shall provide coverage to each member without regard to the member's health status-related factors.

(b) A health carrier that issues a health benefit plan to members of a bona fide association shall accept or reject all members who apply for coverage and may exclude only those members who have not applied for coverage.

Source Note: The provisions of this §21.2706 adopted to be effective July 5, 1999, 24 TexReg 5014.