1194                            LAWS OF MARYLAND                       [CH. 553

specifically for their insurance. No policy may be issued on which the
entire premium is to be derived from funds contributed by the in-
sured 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 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 contribution. 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 indi-
vidual insurability is not satisfactory to the insurer.

(3)   The amount of insurance on the life of any member shall at
no time exceed the total amount of his shares and deposits in the
credit union, or two thousand dollars ($2,000) whichever is less.

(4)   The policy must cover at least twenty-five members at date of
issue.

425.    Limit as to Amount.

No such policy of group life insurance may be issued to an em-
ployer, or to a labor union, or to the trustees of a fund established in
whole or in part by an employer or a labor union or association, which
provides term insurance on any person which together with any other
term insurance under any group life insurance policy or policies
issued to the employers of such person or to a labor union or labor
unions of which such person is a member or to the trustees of a
fund or funds established in whole or in part by such employer or
employers or such labor union or labor unions or association, ex-
ceeds twenty thousand dollars ($20,000), unless one hundred and
fifty percent (150%) of the annual compensation of such person from
his employer or employers exceeds twenty thousand dollars ($20,000),
in which event all such term insurance shall not exceed forty
thousand dollars ($40,000) or one hundred and fifty percent (150%)
of such annual compensation, whichever is the lesser.

426.    Provisions Required in Group Contracts.

No policy of group life insurance shall be delivered in this State
unless it contains in substance the provisions set forth in sections 427
through 436 of this subtitle or provisions which in the opinion of the
Commissioner are more favorable to the persons insured, or at least
as favorable to the persons insured and more favorable to the
policyholder; except, however, that:

(1)   Sections 432 to 436, inclusive, shall not apply to policies issued
to a creditor to insure debtors of such creditor;

(2)   The standard provisions required for individual life insurance
policies shall not apply to group life insurance policies; and

(3)   If the group life insurance policy is on a plan of insurance
other than the term plan, it shall contain a nonforfeiture provision
or provisions which in the opinion of the Commissioner is or are
equitable to the insured persons and to the policyholder, but nothing
herein shall be construed to require that group life insurance policies
contain the same nonforfeiture provisions as are required for in-
dividual life insurance policies.