In order for an alumni association to be eligible to purchase group health insurance for its members, all of these statements must be true EXCEPT when the association?

Prepare for the Oregon Life and Health Insurance Exam with flashcards and multiple choice questions, each with hints and explanations. Get set for success!

An alumni association must meet specific requirements to be eligible to purchase group health insurance for its members. One key requirement is that the association is organized primarily for purposes that do not include buying insurance. This allows the association to serve a broader purpose and not solely focus on insurance coverage, which is a critical distinction for group insurance eligibility.

When an alumni association is organized primarily to serve its members and not just for obtaining insurance, it reflects the association's commitment to providing value and support through various activities, rather than merely acting as a vehicle for purchasing insurance. This aspect ensures that the association has a genuine purpose beyond just acquiring insurance coverage, aligning with regulatory expectations for group health insurance policies.

The other criteria, such as being active for a minimum number of years, having by-laws and regular meetings, and maintaining a specific membership size, contribute to the overall legitimacy and stability of the association. However, these details are more about the operational structure of the association rather than its core purpose in relation to insurance eligibility.

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