1024                             LAWS OF MARYLAND                        [CH. 630

"Life, Accident and Health Insurance", said new sections to follow
immediately after

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185A. Group—Life Insurance. Definition. No policy of
group life insurance shall be delivered, or issued for delivery, in this
State unless it conforms to one of the following descriptions:

(1) A policy issued to an employer, or to the trustees of a fund
established by an employer, which employer or trustees shall be
deemed the policyholder, to insure employees of the employer for the
benefit of persons other than the employer, subject to the following
requirements:

(a)  The employees eligible for insurance under the policy shall be
all of the employees of the employer, or all of any class or classes
thereof determined by conditions pertaining to their employment.
The policy may provide that the term "employees" shall include the
employees of one or more subsidiary corporations, and the employees,
individual proprietors, and partners of one or more affiliated corpora-
tions, proprietors or partnerships if the business of the employer and
of such affiliated corporations, proprietors or partnerships is under
common control through stock ownership, or contract or otherwise.
The policy may provide that the term "employees" shall include the
individual proprietor or partners if the employer is an individual
proprietor or a partnership. The policy may provide that the term
"employees" shall include retired employees.

No director of a corporate employer shall be eligible for insurance
under the policy unless such person is otherwise eligible as a bona
fide employee of the corporation by performing services other than
the usual duties of a director. No individual proprietor or partner
shall be eligible for insurance under the policy unless he is actively
engaged in and devotes a substantial part of his time to the conduct
of the business of the proprietor or partnership. A policy issued to
insure the "employees" of a public body may provide that the term
employee shall include elected or appointed officials.

(b)  The premium for the policy shall be paid by the policyholder,
either wholly from the employer's funds or funds contributed by him,
or partly from such funds and partly from funds contributed by the
insured employees. No policy may be issued on which the entire
premium is to be derived from funds contributed by the insured em-
ployees. A policy on which part of the premium is to be derived from
funds contributed by the insured employees may be placed in force
only if at least 75% of the then eligible employees, 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