J. MILLARD TAWES, Governor                     1209

469.    Franchise Health Insurance Law.

Health insurance on a franchise plan is hereby declared to be that
form of health insurance issued to:

(1)   Three or more employees of any corporation, copartnership,
or individual employer or any governmental corporation, agency or
department thereof; or

(2)   Ten or more members, employees or employees of members of
any trade or professional association or of a labor union or of any
other association having had an active existence for at least two (2)
years where such association or union has a constitution or bylaws
and is formed in good faith for purposes other than that of obtaining
insurance;

Where such persons with or without their dependents, are issued
the same form of an individual policy varying only as to amounts and
kinds of coverage applied for by such persons under an arrangement
whereby the premiums on such policies may be paid to the insurer
periodically by the employer, with or without payroll deductions,
or by the association for its members, or by some designated person
acting on behalf of such employer, association or union. The term
"employees" as used herein may be deemed to include the officers,
managers and employees and retired employees of the employer and
the individual proprietor or partners if the employer is an individual
proprietor or partnership.

470.    Transportation Ticket Health Insurance.

(a)   A transportation ticket policy is any ticket policy of health
insurance sold at transportation stations, ticket offices, or travel
bureaus either by vending machines or by the employees of railroads,
steam lines, airlines and other organizations engaged in transporting
persons on common carriers, or by the individuals or employees of
persons engaged in selling transportation on such common carriers,
or by other licensed agents, having as its dominant feature the pro-
tection of the insured from a transportation hazard.

(b)   No transportation ticket policy shall be issued or delivered
in this State unless it conforms to the requirements and provisions of
sections 438 to 466, inclusive, of this subtitle, with due regard to
section 439 (b) pertaining to inapplicable or inconsistent provisions.

26. GROUP AND BLANKET HEALTH INSURANCE

471.    Group Health Insurance Defined; Eligible Groups.

Group health insurance is hereby declared to be that form of
health insurance covering groups of persons as defined below, with
or without one or more members of their families or one or more
of their dependents, or covering one or more members of the families
or one or more dependents of such groups of persons, and issued
upon the following basis:

(1) Under a policy issued to an employer or trustees of a fund
established by an employer, who shall be deemed the policyholder,
insuring employees of such employer for the benefit of persons other
than the employer. The term "employees" as used herein shall be
deemed to include the officers, managers, and employees of the
employer, the individual proprietor or partner if the employer is