Ch. 11                                      1996 LAWS OF MARYLAND

EMPLOYER OR TO THE TRUSTEES OF A FUND ESTABLISHED BY AN EMPLOYER TO
COVER EMPLOYEES OF THE EMPLOYER FOR THE BENEFIT OF PERSONS OTHER
THAN THE EMPLOYER.

(2) THE EMPLOYER OR TRUSTEES TO WHICH THE POLICY IS ISSUED ARE
DEEMED THE POLICYHOLDER.

(B)     EMPLOYEES ELIGIBLE FOR INSURANCE.

(1)     ALL EMPLOYEES OF THE EMPLOYER, OR ALL OF ANY CLASS OR
CLASSES OF EMPLOYEES DETERMINED BY CONDITIONS PERTAINING TO THEIR
EMPLOYMENT, ARE ELIGIBLE FOR INSURANCE UNDER A POLICY ISSUED IN
ACCORDANCE WITH THIS SECTION.

(2)     THE POLICY MAY PROVIDE THAT THE TERM "EMPLOYEE"
INCLUDES:

(I)      AN EMPLOYEE OF ONE OR MORE SUBSIDIARY CORPORATIONS;

(II)    AN EMPLOYEE, INDIVIDUAL PROPRIETOR, OR PARTNER OF
ONE OR MORE AFFILIATED CORPORATIONS, PROPRIETORSHIPS, OR PARTNERSHIPS
IF THE BUSINESS OF THE EMPLOYER AND OF THE AFFILIATES IS UNDER COMMON
CONTROL;

(III)   AN INDIVIDUAL PROPRIETOR IF THE EMPLOYER IS THE
INDIVIDUAL PROPRIETORSHIP;

(IV)   A PARTNER IF THE EMPLOYER IS A PARTNERSHIP; AND

(V)     A RETIRED EMPLOYEE.

(3)     A DIRECTOR OF A CORPORATE EMPLOYER IS NOT ELIGIBLE FOR
INSURANCE UNDER THE POLICY UNLESS THE DIRECTOR IS OTHERWISE ELIGIBLE AS
AN EMPLOYEE OF THE CORPORATION BY PERFORMING SERVICES OTHER THAN THE
USUAL DUTIES OF A DIRECTOR.

(4)     AN INDIVIDUAL PROPRIETOR OR PARTNER IS NOT ELIGIBLE FOR
INSURANCE UNDER THE POLICY UNLESS THE INDIVIDUAL PROPRIETOR OR
PARTNER IS ACTIVELY ENGAGED IN AND DEVOTES SUBSTANTIAL TIME TO THE
CONDUCT OF THE BUSINESS OF THE PROPRIETORSHIP OR PARTNERSHIP.

(C)     PREMIUMS.

(1) THE EMPLOYER OF TRUSTEES SHALL PAY THE PREMIUM FOR THE
POLICY:

(I)  WHOLLY FROM THE FUNDS OF THE EMPLOYER OR FUNDS
CONTRIBUTED BY THE EMPLOYER; OR

(II) PARTLY FROM THE FUNDS OF THE EMPLOYER OR FUNDS
CONTRIBUTED BY THE EMPLOYER AND PARTLY FROM FUNDS CONTRIBUTED BY
THE INSURED EMPLOYEES.

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