(1) An insurer may issue a group insurance policy offering life insurance to an association group if:

1. (a) the commissioner authorizes the association group;
2. (b) the benefits of the group insurance policy are reasonable in relation to the premiums charged for the policy; and

3. (c) the association group:

   1. (i) purchases insurance on a group basis on behalf of the association group's members;

   2. (ii) is formed and maintained for a shared substantially common purpose that:

      1. (A) is not related to obtaining insurance; and
      2. (B) is the same profession, trade, or occupation or has some common economic, representation of interest, or genuine organizational relationship;
   3. (iii) has at least 100 members;
   4. (iv) has been actively in existence for at least five years;

   5. (v) has a constitution and bylaws that require:

      1. (A) the association to hold regular meetings not less than annually to further the purpose of the association's members; and
      2. (B) members of the association to have voting privileges and representation on any governing board or committee;
   6. (vi) does not condition membership in the association group on any health status-related factor;
   7. (vii) makes insurance offered through the association group available exclusively to a member of the association; and
   8. (viii) only offers insurance through the association group in connection with a member of the association group.

(3)

1. (a) The following shall pay the premium under a group insurance policy offering life insurance that an insurer issues to an association group:

   1. (i) the policyholder from funds contributed by the association;
   2. (ii) employer members, from funds contributed by the covered persons; or
   3. (iii) from any combination of Subsections (3)(a)(i) and (ii).
2. (b) Except as provided under Section 31A-22-512, a policy on which no part of the premium is contributed by the covered persons, specifically for their insurance, is required to insure all eligible persons.

(4)

1. (a) An association group that meets the requirements described under Subsection (1) shall disclose the following to each insured member:

   1. (i) each cost related to joining and maintaining membership in the association;
   2. (ii) that membership fees or dues are in addition to the policy premium;
   3. (iii) that the association group holds the master group insurance policy;
   4. (iv) that the association group and insurer determine the amount of the premium charged and the terms and conditions of coverage under the group insurance policy; and

   5. (v) that the association group policyholder and insurer may change the premium and terms and conditions of coverage under the insurance policy:

      1. (A) through agreement; and
      2. (B) without the consent of the individual certificate holder.
2. (b) If an insurer collects membership fees or dues on behalf of an association, the insurer shall disclose to each member of the association that the insurer is billing and collecting membership fees and dues on behalf of the association.