“Individual health benefit plan” means:
1. A health benefit plan for individuals and their dependents, other than a converted policy or a plan for coverage of a bona fide association; and
2. A certificate issued to an individual that evidences coverage under a policy or contract issued to a trust or an association or to any other similar group of persons, other than a plan for coverage of a bona fide association, regardless of the situs of delivery of the policy or contract, if the individual pays the premium and is not being covered under the policy or contract pursuant to any provision for the continuation of benefits applicable under federal or state law.