Arkansas Code
Chapter 85 - Accident and Health Insurance
§ 23-85-101. Franchise plan — Definition

(a) Accident and health insurance on a franchise plan is declared to be that form of accident and health insurance issued to:
(1) Five (5) or more employees of any corporation, copartnership, or individual employer or any governmental corporation, agency, or department thereof; or
(2) Ten (10) or more members, employees, or employees of members of any trade or professional association or of a labor union or of any other association having had an active existence for at least two (2) years when:
(A) The association or union has a constitution or bylaws and is formed in good faith for purposes other than that of obtaining insurance; and
(B) Such persons, with or without their dependents, are issued the same form of an individual policy varying only as to amounts and kinds of coverage applied for by the persons under an arrangement whereby the premiums on the policies may be paid to the insurer periodically by:
(i) The employer, with or without payroll deductions;
(ii) The association for its members; or
(iii) Some designated person acting on behalf of the employer or association or union.



(b) As used in this section, the term “employees” may be deemed to include officers, managers, and employees and retired employees of the employer and the individual proprietor or partners if the employer is an individual proprietor or partnership.

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