J. MILLARD TAWES, Governor                       1189

419.    Labor Union Groups.

The lives of a group of individuals may be insured under a policy-
issued to a labor union, which shall be deemed the policyholder, to
insure members of such union for the benefit of persons other than
the union or any of its officials, representatives or agents, subject to
the following requirements:

(1)   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 mem-
bership in the union, or both.

(2)   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 mem-
bers 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 seventy-five percent (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 in-
surance must insure all eligible members, or all except any as to
whom evidence of individual insurability is not satisfactory to the
insurer.

(3)   The policy must cover at least twenty-five (25) members at
date of issue.

(4)   The amounts of insurance under the policy must be based upon
some plan precluding individual selection either by the members or
by the union.

420.    Trustee Groups.

The lives of a group of individuals may be insured under a policy
issued to the trustees of a fund established by two (2) or more
employers in the same industry or by one (1) or more labor unions,
or by one or more employers and one or more labor unions, which
trustees shall be deemed the policyholder, to insure employees of the
employers or members of the unions for the benefit of persons other
than the employers or the unions, subject to the following require-
ments :

(1) The persons eligible for insurance shall be all of the employees
of the employers or all of the members of the unions, or all of any
class or classes thereof determined by conditions pertaining to their
employment, or membership in the union, or both. The policy may
provide that the term "employees" shall include retired employees,
and the individual proprietor or partners if an employer is an indi-
vidual proprietor or a partnership. No director of a corporate em-
ployer shall be eligible for insurance under the policy unless such
person is otherwise eligible as a bona fide employee of the corpora-
tion by performing services other than 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 sub-