1. (a) A group described in section 2(1) of this chapter must meet the following requirements to be eligible to purchase coverage under a group insurance policy:

   1. (1) The group consists of at least ten (10) individuals who are members.
   2. (2) The group has been in existence for at least two (2) years.
   3. (3) The group was formed for a purpose other than the purchase of insurance.

2. (b) A group described in section 2(2) of this chapter may include each of the following as a group member:

   1. (1) An employee of a subsidiary or an affiliate of the employer.
   2. (2) A retired employee of the employer.
   3. (3) An individual business owner or proprietor who is the employer.
   4. (4) A partner of a partnership that is the employer.
   5. (5) A director or retired director of the employer.
   6. (6) A former employee, owner, proprietor, partner, or director who purchased coverage under a group insurance policy before leaving the position.
   7. (7) A spouse, child, or household resident of any individual described in subdivisions (1) through (6).

3. (c) A group is not eligible to purchase, and an insurer shall not provide to the group, coverage under a group insurance policy if:

   1. (1) the purchase of insurance is a condition of membership in the group; or
   2. (2) a group member is penalized by the group as a result of the group member refusing coverage under a group insurance policy.

As added by P.L.32-2012, SEC.2.