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What is a Bona Fide Association? A Comprehensive Legal Overview
Definition & Meaning
A bona fide association refers to a legitimate group formed for purposes other than obtaining insurance. To qualify as a bona fide association in the context of health insurance, the group must have been active for at least five years, operate in good faith, and not discriminate against members based on health status. This means that all members can access health insurance coverage without restrictions related to their health conditions.
Table of content
Legal Use & context
The term bona fide association is primarily used in health insurance law. It is relevant in legal contexts where associations seek to provide health insurance benefits to their members. This term is significant in civil law, particularly in matters related to health coverage and insurance regulations. Users can manage their insurance needs through legal templates available on platforms like US Legal Forms, which offer resources to help navigate these legal requirements.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A local trade association for electricians offers health insurance to its members. The association has been active for over five years and provides coverage without considering members' health conditions.
Example 2: A professional organization for freelance writers has existed for more than five years and provides health insurance to all its members, ensuring that no one is excluded based on their health status. (hypothetical example)
Relevant laws & statutes
One important statute related to bona fide associations is 42 USCS § 300gg-91, which outlines the definition and requirements for these associations in the context of health insurance coverage. This law ensures that associations meet specific criteria to provide fair access to health insurance for their members.
State-by-state differences
State
Key Differences
California
Requires additional disclosures for health insurance plans offered through associations.
Texas
Allows associations to offer limited health benefits under certain conditions.
New York
Has specific regulations governing the formation and operation of health insurance associations.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
Bona Fide Association
A legitimate group formed for purposes other than obtaining insurance.
Must have been active for five years and cannot discriminate based on health status.
Health Insurance Cooperative
A member-owned organization that provides health insurance.
Focuses on mutual benefit and may not have the same longevity requirements.
Insurance Trust
A legal entity that holds and manages funds for insurance purposes.
Primarily financial in nature, rather than focused on membership and health coverage.
Common misunderstandings
What to do if this term applies to you
If you are part of an association considering health insurance options, ensure that it meets the bona fide criteria. Review your association's history and membership policies. For assistance, explore US Legal Forms for ready-to-use legal templates that can help you navigate the process. If your situation is complex, seeking professional legal advice is recommended.
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