THEODORE R. McKELDIN, GOVERNOR                   1025

no part of the premium is to be derived from funds contributed by the
insured employees must insure all eligible employees, or all except
any as to whom evidence of individual insurability is not satisfactory
to the insurer.

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

(d)  The amounts of insurance under the policy must be based upon
some plan precluding individual selection either by the employees or
by the employer or trustees.

(2) A policy issued to a creditor, who shall be deemed the policy-
holder, to insure debtors of the creditor, subject to the following re-
quirements:

(a)  The debtors eligible for insurance under the policy shall be all
of the debtors of the creditor

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or all of any class or classes thereof determined by condi-
tions pertaining to the indebtedness or to the purchase giving rise to
the indebtedness. The policy may provide that the term debtors"
shall include the debtors of one or more subsidiary corporations, and
the debtors of one or more affiliated corporations, proprietors or
partnerships if the business of the policyholder and of such affiliated
corporations, proprietors or partnerships is under common control
through stock ownership, contract or otherwise.

(b)  The premiums for the policy shall be paid by the policyholder,
either from the creditor's funds, or from charges collected from the
insured debtors, or from both. A policy on which part or all of the
premium is to be derived from the collection from the insured debtors
of identifiable charges not required of uninsured debtors shall not
include, in the class or classes of debtors eligible for insurance,
debtors under obligations outstanding at its date of issue without
evidence of individual insurability unless at least 75% of the then
eligible debtors elect to pay the required charges. A policy on which
no part of the premium is to be derived from the collection of such
identifiable charges must insure all eligible debtors, or all except any
as to whom evidence of individual insurability is not satisfactory to
the insurer.

(c)  The policy may be issued only if the group of eligible debtors
is then receiving new entrants at the rate of at least one hundred
persons yearly, or may reasonably be expected to receive at least one
hundred new entrants during the first policy year, and only if the
policy reserves to the insurer the right to require evidence of in-
dividual insurability if less than 75% of the new entrants become
insured.

(d)  The amount of insurance on the life of any debtor shall at no
time exceed the amount owed by him

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OR THE FACE
AMOUNT OF ANY LOAN OR LOAN COMMITMENT, TOTALLY
OR PARTIALLY EXECUTED, MADE TO A DEBTOR WITH SEA-
SONAL INCOME BY A CREDITOR IN GOOD faITH FOR GEN-
ERAL AGRICULTURAL OR HORTICULTURAL PURPOSES,
SECURED OR UNSECURED, WHERE THE DEBTOR BECOMES
PERSONALLY LIABLE FOR THE PAYMENT THEREOF, PRO-
VIDED, THAT IN NO CASE SHALL THE AMOUNT OF INSUR-
ANCE ON THE LIFE OF ANY DEBTOR EXCEED $10,000.

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