J. MILLARD TAWES, Governor                     1191

employment or to membership in the association of persons licensed
by the State of Maryland or authorized by law to engage in a rec-
ognized profession, or to both.

(2)   The premium for the policy shall be paid by the trustees
wholly from funds contributed by the association of persons licensed
by the State of Maryland or authorized by law to engage in a recog-
nized profession, or partly from such funds and partly from funds
contributed by the insured persons. 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,
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.

(3)   The policy must cover at date of issue at least one hundred
persons.

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

422. Public Employee Groups.

(a) The lives of a group of individuals may be insured under a
policy issued to a county or to an incorporated city or town or an
association of counties, cities, or towns, state college or university,
or any department of the state, county, city or town government,
which employer or association shall be deemed the policyholder, to
insure the employees of any such county, incorporated city, or town,
of any such state college or university, or of any such department
of the state, county, city or town government for the benefit of
persons other than the policyholder subject to the following require-
ments :

(1)   The employees eligible for insurance under the policy shall be
all of the employees of the employer or all of any class or classes
thereof determined by conditions pertaining to their employment.
The policy may provide that the term "employees" shall include
retired employees.

(2)   The premium for the policy shall be paid by the policyholder,
wholly from funds contributed by it as employer or partly from
such funds and partly from funds contributed by the insured
employees or wholly from funds contributed by the insured em-
ployees, except that:

(i) The employer may deduct from the employees' salaries the
required contributions for the premiums when authorized in writing
by the respective employees so to do; and

(ii) The premium for the policy may be paid by the policy-
holder wholly or partly from funds contributed by any incorporated
city, town or village policyholder when authorized by the charter of
such city, town or village or as otherwise authorized by law.