1026                                LAWS OF MARYLAND                          [CH. 630

(e) The insurance shall be payable to the policyholder. Such pay-
ment shall reduce or extinguish the unpaid indebtedness of the debtor
to the extent of such payment, PROVIDED, THAT IN THE CASE
OF A DEBTOR FOR GENERAL AGRICULTURAL OR HORTI-
CULTURAL PURPOSES OF THE TYPE DESCRIBED IN PARA-
GRAPH (D) OF SUB-SECTION (2) OF THIS SECTION, THE
INSURANCE IN EXCESS OF THE INDEBTEDNESS TO THE
CREDITOR, IF ANY, SHALL BE PAYABLE TO THE BENE-
FICIARY DESIGNATED BY THE DEBTOR, SUBJECT TO THE
PROVISIONS OF THE POLICY IN THE EVENT THERE IS NO
DESIGNATED BENEFICIARY, AS TO ALL OR ANY PART OF
SUCH EXCESS, LIVING AT THE DEATH OF THE DEBTOR,
SUCH EXCESS SHALL BE PAYABLE TO THE ESTATE OF
THE DEBTOR SUBJECT TO ANY RIGHT RESERVED BY THE
INSURER IN THE POLICY TO PAY AT ITS OPTION ALL OR
ANY PART OF SUCH EXCESS TO ANY PERSON APPEARING
TO THE INSURER TO BE EQUITABLY ENTITLED THERETO
BY REASON OF HAVING INCURRED FUNERAL OR OTHER
EXPENSES INCIDENT TO THE MAINTENANCE, LAST ILL-
NESS, OR DEATH OF THE DEBTOR.

(F) NOTHING IN THIS SUB-PARAGRAPH (2) SHALL IN
ANY MANNER BE CONSTRUED TO VALIDATE ANY CHARGE
OR PRACTICE WHICH IS ILLEGAL UNDER ANY LAW OR
REGULATION GOVERNING USURY, SMALL LOANS AND RE-
TAIL INSTALLMENT SALES.

(3) A policy issued to a labor union, which shall be deemed the
policyholder, to insure members of such union for the benefit of per-
sons other than the union or any of its officials, representatives or
agents, subject to the following requirements:

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

(b)   The premium for the policy shall be paid by the policyholder,
either wholly from the union's funds, or partly from such funds and
partly from funds contributed by the insured members, specifically
for their insurance. No policy may be issued on which the entire
premium is to be derived from funds contributed by the insured
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 contributions. 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.

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

(d)  The amounts of insurance under the policy must be based
upon some plan precluding individual selection either by the mem-
bers or by the union.