1326                             Laws of Maryland                       [Ch. 740

or classes thereof determined by conditions pertaining to their
employment, or to membership in the unions or the association of
persons licensed by the State of Maryland OR AUTHORIZED BY
LAW to engage in a recognized profession, or the association of
employees of a political subdivision OR ANY OTHER ORGANIZED
GROUP OF INDIVIDUALS OF OCCUPATIONAL SIMILARITY
[, or to both]. The policy may provide that the term "employees" shall
include retired employees and the individual proprietor or partners
if an employer is an individual proprietor or partnership. 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. The policy may provide that the
term "employees" shall include the trustees or their employees or
both, if their duties are principally connected with such trusteeship,

(b) The premium for the policy shall be paid by the trustees
wholly from funds contributed by the employer or employers of the
insured persons, or by the union or unions or by the association of
persons licensed by the State of Maryland OR AUTHORIZED BY
LAW to engage in a recognized profession, or by the association of
employees of a political subdivision, OR ANY OTHER ORGANIZED
GROUP OF INDIVIDUALS OF OCCUPATIONAL SIMILARITY,
[or by both,] or except in the case of a policy issued "to the trustee of
a fund established wholly by two or more employers, partly from
such funds and partly from funds contributed by the insured per-
sons. No policy may be issued to the trustees of a fund established
wholly by two or more employers, on which any part of the premium
is to be derived from funds contributed by the insured persons spe-
cifically for their insurance. A policy on which part of the premium
is to be derived from funds contributed by the insured persons spe-
cifically for their insurance may be placed in force only if at least
75% of the then eligible persons, excluding any as to whom evidence
of insurability is not satisfactory to the insurer, elect to make the
required contributions.

The premiums may be paid by the insured persons specifically for
their insurance if the policy is issued to the trustees of an association
of persons licensed by the State of Maryland OR AUTHORIZED BY
LAW to engage in a recognized profession, or an association of
employees of a political subdivision, OR ANY OTHER ORGANIZED
GROUP OF INDIVIDUALS OF OCCUPATIONAL SIMILARITY,
provided the total number of persons covered at date of issue exceeds
600 or 75% of the eligible persons whichever is less, excluding any
as to whom evidence of 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
persons specifically for their insurance must insure all eligible per-
sons, or all except any as to whom evidence of individual insurability
is not satisfactory to the insurer.

Sec. 2. And be it further enacted, That this Act shall take effect
June 1, 1957.

Approved April 15, 1957.