US Laws, Codes, Statutes & Cases

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 20
                             GROUP LIFE INSURANCE
    41-2007.  TRUSTEE GROUPS. The lives of a group of individuals may be
insured under a policy issued to the trustees of a fund established in this
state by two (2) or more employers in the same industry or to the trustees of
a fund established by one (1) or more labor unions, or by one (1) or more
employers and one (1) or more labor unions, which trustees shall be deemed the
policyholder, to insure employees of the employers or members of the unions
for the benefit of persons other than the employers or the unions, subject to
the following requirements:
    (1)  The persons eligible for insurance shall be all of the employees of
the employers or all of the members of the unions, or all of any class or
classes thereof determined by conditions pertaining to their employment, or to
membership in the unions, or to both. The policy may provide that the term
"employees" shall include retired employees, and the individual proprietor or
partners if an employer is an individual proprietor or a partnership. No
director of a corporate employer shall be eligible for insurance under the
policy unless such person is otherwise eligible as a bona fide employee of the
corporation by performing services other than the usual duties of a director.
No individual proprietor or partner shall be eligible for insurance under the
policy unless he is actively engaged in and devotes a substantial part of his
time to the conduct of the business of the proprietor or partnership. The
policy may provide that the  term "employees" shall include the trustees, or
their employees, or both, if their duties are principally connected with such
trusteeship.
    (2)  The premium for the policy shall be paid by the trustees from funds
contributed by the employer or employers of the insured persons, or by the
union or unions, or from funds contributed by the insured persons, or from any
combination of these. A policy on which no part of the premium is to be
derived from funds contributed by the insured persons specifically for their
insurance must insure all eligible persons, or all except any as to whom
evidence of individual insurability is not satisfactory to the insurer, or who
have rejected the coverage in writing.
    (3)  The policy shall not require that, if a participating employer
discontinues membership in the association, the insurance of his employees
shall cease solely by reason of such discontinuance.