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(a) A political subdivision constitutes a duly formed group for issuance of a group health insurance policy that provides health insurance coverage to the persons that comprise it, if
(1) the eligibility for coverage for a person is based on criteria that reflect the common purpose for which the political subdivision exists and would preclude from coverage a person who may be associated or attempt to be associated with the political subdivision on a nonpermanent basis for the sole purpose of obtaining group health insurance coverage; and
(2) the benefit payments are made directly to the individuals in the group.
(b) In this section, "political subdivision" means the State of Alaska, an organized borough, or a city.
History: Eff. 3/26/82, Register 81; am 4/20/97, Register 142
Authority: AS 21.06.090
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Last modified 7/05/2006