2005 Idaho Code - 41-2003 — EMPLOYEE GROUPS

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 20
                             GROUP LIFE INSURANCE
    41-2003.  EMPLOYEE GROUPS. The lives of a group of individuals may be
insured under a policy issued to an employer, or to the trustees of a fund
established by an employer, which employer or trustees shall be deemed the
policyholder, to insure employees of the employer for the benefit of persons
other than the employer, subject to the following requirements:
    (1)  The employees eligible for insurance under the policy shall be all of
the employees of the employer, or all of any class or classes thereof
determined by conditions pertaining to their employment. The policy may
provide that the term "employees" shall include the employees of one (1) or
more subsidiary corporations, and the employees, individual proprietors, and
partners of one (1) or more affiliated corporations, proprietors or
partnerships if the business of the employer and of such affiliated
corporations, proprietors or partnerships is under common control through
stock ownership, contract or otherwise. The policy may provide that the term
"employees" shall include the individual proprietor or partners if the
employer is an individual proprietor or a partnership. The policy may provide
that the term "employees" shall include retired employees. 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. A policy
issued to insure the employees of a public body may provide that the term
"employees" shall include elected or appointed officials.
    (2)  The premium for the policy shall be paid from the employer's funds or
funds contributed by him, from funds contributed by the insured employees, or
from both. A policy on which no part of the premium is to be derived from
funds contributed by the insured employees must insure all eligible employees,
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.