WILLIAM DONALD SCHAEFER, Governor                    Ch. 582

(2) NOTWITHSTANDING PARAGRAPH (1)(II)2 OF THIS
SUBSECTION, A CORPORATE EMPLOYER HAVING THE INSURABLE INTEREST IN
AN EMPLOYEE DESCRIBED IN PARAGRAPH (1)(II) OF THIS SUBSECTION MAY
NOT TAKE ANY TYPE OF RETALIATORY ACTION AGAINST AN EMPLOYEE WHO
REFUSES TO CONSENT TO AN INSURANCE CONTRACT BEING PURCHASED IN
THE EMPLOYEE'S NAME.

371.

(a) No life or health insurance contract upon an
individual, except a contract of group life insurance or of group
or blanket health insurance shall be made or effectuated unless
at the time of the making of the contract the individual insured,
being of competent legal capacity to contract, applies therefor,
or has consented thereto in writing, except in the following
cases:

(1)  A spouse may effectuate such insurance upon the
other spouse.

(2)  Any person having an insurable interest in the
life of a person under eighteen years of age, or any person upon
whom a minor is dependent for support and maintenance, may
effectuate insurance upon the life of or pertaining to such
minor.

(3)  Family policies insuring any. two or more members
of a family may be issued on an application signed by either
parent, a stepparent, or by a husband or wife.

(4)  Any person having an insurable interest in the
life of a person who is legally incompetent to consent to such
insurance may, upon written application, effectuate such
insurance upon the life of such person.

(5) A CORPORATE EMPLOYER HAVING THE INSURABLE

INTEREST IN AN EMPLOYEE DESCRIBED IN § 366(C)(2) OF THIS SUBTITLE
MAY EFFECT AN INSURANCE CONTRACT UPON THE LIFE OF THE EMPLOYEE IF
THE EMPLOYER PROVIDES THE EMPLOYEE WITH NOTICE IN WRITING THAT
THE INSURANCE CONTRACT HAS BEEN PURCHASED.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1989.

Approved May 25, 1989.

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