(a) A group accident and health insurance policy may be issued to an association, including a labor union or an organization of labor unions, a membership corporation organized or holding a certificate of authority under the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon’s Texas Civil Statutes), and a cooperative or corporation subject to the supervision and control of the Farm Credit Administration, to insure the association’s active and retired members, employees, or employees of members for the benefit of persons other than the association or its officers or trustees.
(b) To be eligible to obtain a group accident and health insurance policy, an association must:
(1) have a constitution and bylaws;
(2) have been organized and have actively existed for at least two years; and
(3) be maintained in good faith for purposes other than that of obtaining insurance.