Ch. 11

1996 LAWS OF MARYLAND

MEMBERSHIP IN THE UNION OR BOTH, ARE ELIGIBLE FOR INSURANCE UNDER A
POLICY ISSUED IN ACCORDANCE WITH THIS SECTION.

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

(I)       A TRUSTEE OR EMPLOYEE OF THE TRUSTEE OR BOTH IF THE
DUTIES OF THE TRUSTEE OR EMPLOYEE ARE PRINCIPALLY CONNECTED WITH THE
TRUSTEESHIP;

(II)     A SOLE PROPRIETOR IF THE EMPLOYER IS A SOLE
PROPRIETORSHIP;

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

(IV)    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
USUAL DUTIES OF A DIRECTOR.

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

(C) PREMIUMS.

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

(I)      WHOLLY FROM FUNDS CONTRIBUTED BY THE EMPLOYER OR
EMPLOYERS OR BY THE UNION OR UNIONS OR BY BOTH; OR

(II)     PARTLY FROM FUNDS CONTRIBUTED BY THE EMPLOYER OR
EMPLOYERS OR UNION OR UNIONS OR BOTH, AND PARTLY FROM FUNDS
CONTRIBUTED BY THE INSURED EMPLOYEES OR MEMBERS.

(2)      A POLICY MAY NOT BE ISSUED ON WHICH THE ENTIRE PREMIUM IS
TO BE PAID FROM FUNDS CONTRIBUTED BY THE INSURED EMPLOYEES OR
MEMBERS SPECIFICALLY FOR THEIR INSURANCE.

(3)      A POLICY ON WHICH THE PREMIUM IS TO BE PAID PARTLY FROM
FUNDS CONTRIBUTED BY THE INSURED EMPLOYEES OR MEMBERS SPECIFICALLY
FOR THEIR INSURANCE MAY BE PLACED IN FORCE ONLY IF AT LEAST 75% OF THE
ELIGIBLE EMPLOYEES OR MEMBERS, OTHER THAN THOSE WHO HAVE EVIDENCE OF
INDIVIDUAL INSURABILITY THAT IS UNSATISFACTORY TO THE INSURER, ELECT TO
MAKE THE REQUIRED CONTRIBUTIONS.

(4)      A POLICY ON WHICH NO PART OF THE PREMIUM IS PAID FROM
FUNDS CONTRIBUTED BY THE INSURED EMPLOYEES OR MEMBERS SPECIFICALLY
FOR THEIR INSURANCE MUST INSURE:

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