S.B. 840

Sincerely,

William Donald Schaefer

Governor

Senate Bill No. 840

AN ACT concerning

Group Life Insurance - Associations of Federal Employees

FOR the purpose of authorizing an association of federal employees to be issued a group
life insurance policy under certain circumstances; making this Act an emergency
measure; and generally relating to group life insurance and associations of federal
employees.

BY repealing and reenacting, with amendments,
Article 48A - Insurance Code
Section 422(b)

Annotated Code of Maryland
(1991 Replacement Volume and 1993 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 48A - Insurance Code

422.

(b) The lives of a group of individuals may be insured under a policy issued to
ANY ASSOCIATION OF FEDERAL EMPLOYEES, any association of State employees, or
any association of State, county or city or town employees, which association shall be
deemed the policyholder to insure the members of any such ASSOCIATION OF FEDERAL
EMPLOYEES OR association of State, county, city or town employees for the benefit of
persons other than the policyholder subject to the following requirements:

(1)     The persons eligible for insurance under the policy shall be all the
members of the association, or all of any class or classes thereof, determined by
conditions pertaining to their employment or membership in the association, or both.

(2)     The premium for the policy shall be paid by the policyholder, wholly
from funds contributed by it as an association, or partly from such funds and partly from
funds contributed by the insured members, or wholly from funds contributed by the
insured members.

(3)     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.

VETOES

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