2006 Kentucky Revised Statutes - .090   Credit union groups.

304.16-090 Credit union groups. The lives of a group of individuals may be insured under a policy issued to a credit union, which shall be deemed the policyholder, to insure eligible members of the credit union for the benefit of persons other than the credit union or its officials, subject to the following requirements: (1)  The members eligible for insurance under the policy shall be all of the members of the credit union, or all except any as to whom evidence of individual insurability is not satisfactory to the insurer, or all of any class or classes thereof determined by conditions pertaining to their age or membership in the credit union or both. (2)  The premium for the policy shall be paid by the policyholder, either wholly from the credit union's funds, or partly from such funds and partly from funds contributed by the insured members specifically for their insurance. No policy may be issued for which the entire premium is to be derived from funds contributed by the insured members specifically for their insurance. A policy on which part of the premium is to be derived from funds contributed by the insured members specifically for their insurance may be placed in force only if at least seventy-five percent (75%) of the then eligible members, excluding any as to whom evidence of individual insurability is not satisfactory to the insurer, elect to make the required contributions. A policy on which no part of the premium is to be derived from funds contributed by the insured members specifically for their insurance must insure all eligible members, or all except any as to whom evidence of individual insurability is not satisfactory to the insurer. (3)  The policy must cover at least twenty-five (25) members at date of issue. (4)  The amounts of insurance under the policy must be based upon some plan precluding individual selection either by the insured members or by the policyholder. (5)  The amount of insurance under the policy shall not exceed the amount of the total shares and deposits of the member in or with the credit union. Effective: June 18, 1970 History: Created 1970 Ky. Acts ch. 301, subtit. 16, sec. 9, effective June 18, 1970.