J. MILLARD TAWES, GOVERNOR                               185

CHAPTER 193
(House Bill 109)

AN ACT, to add new Section 190 (4A) to Article 48A of the Anno-
tated Code of Maryland (1957 Edition), title "Insurance", sub-
title "Life, Accident and Health Insurance", to follow immediately
after Section 190 (4) thereof, relating to group life insurance
issued to credit unions organized pursuant to the laws of Maryland
and the Federal Credit Union Act.

Section 1. Be it enacted by the General Assembly of Maryland,
That new Section 190 (4A) be and it is hereby added to Article 48A
of the Annotated Code of Maryland (1957 Edition), title "Insurance",
sub-title "Life, Accident and Health Insurance", to follow immedi-
ately after Section 190 (4) thereof, and to read as follows:

190 (4A).

A policy issued to a credit union organized pursuant to the laws
of Maryland or the Federal Credit Union Act, which shall be deemed
the policyholder, to insure the lives of members of such credit union
for the benefit of persons other than the credit union or its officials
subject to the following requirements:

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

(b)   The premium for the policy shall be paid by the policyholder,
either wholly from the credit union's funds, or partly from such funds
and partly from funds contributed by the insured members, specific-
ally 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 amount of insurance on the life of any member shall not
exceed the total amount of his shares and deposits in the credit union
or $2,000, whichever is less.

Explanation: Italics indicate new matter added to existing law.

[Brackets] indicate matter stricken from existing law.
CAPITALS indicate amendments to bill.
Strike out indicates matter stricken out of bill.