1192                            LAWS OF MARYLAND                       [CH. 553

(3)   Such policy may be placed in force only if at least seventy-
five percent (75%) of the eligible employees, excluding any as to
whom evidence of individual insurability is not satisfactory to the
insurer, elect to make the required premium contributions and be-
come insured thereunder.

(4)   The policy must cover at least ten (10) employees at date
of issue.

(5)   A policy issued to insure the employees of a public body may
provide that the term "employees" shall include elected or appointed
officials.

(b) The lives of a group of individuals may be insured under a
policy issued to any association of state employees, or any associa-
tion of state, county or city or town employees, which association
shall be deemed the policyholder to insure the members of any such
association of state, county, city or town employees for the benefit
of persons other than the policyholder subject to the following
requirements:

(1)   The persons eligible for insurance under the policy shall be
all the members of the association, or all of any class or classes
thereof, determined by conditions pertaining to their employment
or membership in the association, or both.

(2)   The premium for the policy shall be paid by the policyholder,
wholly from funds contributed by it as an association, or partly from
such funds and partly from funds contributed by the insured mem-
bers, or wholly from funds contributed by the insured members.

(3)   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.

(4)   A policy on which all or a 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 eligible members, excluding any as to
whom evidence of individual insurability is not satisfactory to the
insurer, or alternately, at least six hundred (600) eligible members,
elect to make the required premium contributions.

(5)   The policy must cover at least one hundred (100) members
at date of issue.

423. Debtor Groups.

The lives of a group of individuals may be insured under a policy
issued to a creditor, who shall be deemed the policyholder, to insure
the debtors of the creditor, subject to the following requirements:

(1) The debtors eligible for insurance under the policy shall be all
of the debtors of the creditor whose indebtedness is repayable either
(i) in installments, or (ii) in one sum at the end of a period not in
excess of eighteen months from the initial date of the debt, or all of
any class or classes thereof determined by conditions pertaining to
the indebtedness or the purchase giving rise to the indebtedness.
The policy may provide that the term "debtors" shall include the