2006 Nebraska Revised Statutes - § 44-1606.01 — Life insurance; policy issued to professional association; requirements.

Section 44-1606.01
Life insurance; policy issued to professional association; requirements.

A policy issued to an association whose eligible members have the same profession, trade, or occupation and which has been organized and is maintained for purposes other than that of obtaining insurance, which shall be deemed the policyholder, to insure members, or employees of members, of such association for the benefit of persons other than the association, or any of its officials, representatives, or agents, shall be subject to the following requirements:

(1) The members or employees eligible for insurance under the policy shall be all the members, and all the employees of the members, of the association, or all of any class or classes thereof determined by conditions pertaining to their employment, or to membership in the association, or both. The policy may provide that the term employees shall include the employees of the association if their duties are principally connected with such association;

(2) The premium for the policy shall be paid by the policyholder, either from the association's own funds, or from charges collected from the insured members or employees specifically for their insurance, or from both. A policy on which any part or all of the premium is to be derived from funds contributed by the insured members or employees specifically for their insurance may be placed in force only if at least fifty percent of the then eligible members or a minimum of two hundred members and employees, whichever is less, 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 or employees specifically for their insurance must insure all eligible members or employees, 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 persons, members or employees at date of issuance; and

(4) The amounts of insurance under the policy must be based upon some plan precluding individual selection either by the members or employees or by the association.


Source:
    Laws 1957, c. 192, § 5, p. 675

    Laws 1967, c. 274, § 1, p. 739

    Laws 1972, LB 1189, § 1

Annotations:
    Where policy issued was not life policy but accident policy, insurer could deny certain coverage to wife of member. Simmons v. Continental Cas. Co., 410 F.2d 881 (8th Cir. 1969).



~Reissue Revised Statutes of Nebraska

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