2014 Arizona Revised Statutes
Title 20 - Insurance
§ 20-1401 Eligible groups

20-1401. Eligible groups

A. Group disability insurance is that form of disability insurance covering groups of persons as defined below, with or without one or more members of their families or one or more of their dependents, or covering one or more members of the families or one or more dependents of persons in such groups, and issued upon the following basis:

1. Under a policy issued to an employer or trustees of a fund established by an employer, who shall be deemed the policyholder, insuring at least two employees of the employer, for the benefit of persons other than the employer. The term " employees" as used herein shall be deemed to include the officers, managers and employees of the employer, the individual proprietor or partners if the employer is an individual proprietor or partnership, the officers, managers and employees of subsidiary or affiliated corporations, the individual proprietors, partners and employees of individuals and firms, if the business of the employer and such individual or firm is under common control through stock ownership, contract or otherwise. The term " employees" as used herein shall be deemed to include retired employees. A policy issued to insure employees of a public body may provide that the term " employees" shall include elected or appointed officials.

2. Under a policy issued to an association, including a labor union, which shall have a constitution and bylaws and which has been organized and is maintained in good faith for purposes other than that of obtaining insurance, insuring at least twenty-five members, employees or employees of members of the association for the benefit of persons other than the association or its officers or trustees. The term " employees" as used herein shall be deemed to include retired employees.

3. Under a policy issued to the trustees of a fund established by two or more employers in the same industry or by one or more labor unions or by one or more employers and one 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. The term " employees" as used herein shall be deemed to include the officers, managers and employees of the employer, and the individual proprietor or partners if the employer is an individual proprietor or partnership. The term " employees" as used herein shall be deemed to include retired employees. 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.

4. Under a policy issued to any persons or organizations to which a policy of group life insurance may be delivered in this state, to insure any class or classes of individuals that could be insured under such group life policy.

5. Under a policy issued to cover any other substantially similar group which, in the discretion of the director, may be subject to the issuance of a group disability policy or contract.

B. Nothing in this article validates any charge or practice illegal under any rule of law or regulation governing usury, consumer lender loans, retail installment sales or the like, or extends the application of any such rule of law or regulation to any transaction not otherwise subject thereto.