Franchise plan insurance

(a) As used in this section, "employees" include: (1) The officers, managers, and employees of the employer; and (2) The individual proprietor or partners, if the employer is an individual proprietor or partnership. (b) Insurance may be issued pursuant to this part on a franchise plan under the terms of which accident and health or sickness insurance is issued to: (1) Five or more employees of any corporation, co-partnership, or individual employer, or any governmental corporation, agency, or department thereof; or (2) Ten or more members, employees, or employees of members of any trade or professional association, of a labor union, or of any other association having had an active existence for at least two years; provided that: (A) Such association or union has a constitution or bylaws and is formed in good faith for purposes other than that of obtaining insurance; (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; and (C) There is an arrangement whereby the premiums on the policies may be paid to the insurer periodically by the employer, with or without payroll deductions, or by the association for its members, or by some designated person acting on behalf of the employer or association.