(a) A blanket accident and health insurance policy may be issued to an association, including a labor union, to cover any group of members or participants defined by reference to specified hazards incident to an activity or operation sponsored or supervised by the association.
(b) To be eligible to obtain a blanket accident and health insurance policy, an association must:
(1) have a constitution and bylaws; and
(2) have been organized and be maintained in good faith for purposes other than that of obtaining insurance.
(c) The association is the policyholder under a policy to which this section applies.