Ch. 11                                          1996 LAWS OF MARYLAND

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

(C)     PREMIUMS.

(1)      THE CREDIT UNION SHALL PAY THE PREMIUM FOR THE POLICY:

(I)       WHOLLY FROM THE FUNDS OF THE CREDIT UNION; OR

(II)     PARTLY FROM THE FUNDS OF THE CREDIT UNION AND
PARTLY FROM FUNDS CONTRIBUTED BY THE INSURED MEMBERS SPECIFICALLY
FOR THEIR INSURANCE.

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

(3)      A POLICY ON WHICH THE PREMIUM IS TO BE PAID PARTLY FROM
FUNDS CONTRIBUTED BY THE INSURED MEMBERS SPECIFICALLY FOR THEIR
INSURANCE MAY BE PLACED IN FORCE ONLY IF AT LEAST 75% OF THE ELIGIBLE
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 MEMBERS SPECIFICALLY FOR THEIR
INSURANCE MUST INSURE:

(I)      ALL ELIGIBLE MEMBERS; OR

(II)     ALL ELIGIBLE MEMBERS OTHER THAN THOSE WHO HAVE
EVIDENCE OF INDIVIDUAL INSURABILITY THAT IS UNSATISFACTORY TO THE
INSURER.

(D)     AMOUNT OF INSURANCE.

THE AMOUNT OF INSURANCE ON THE LIFE OF A MEMBER MAY NOT EXCEED
THE LESSER OF:

(1)      THE TOTAL AMOUNT OF THE MEMBER'S SHARES AND DEPOSITS IN
THE CREDIT UNION; AND

(2)      $5,000.

(E)     MINIMUM NUMBER OF MEMBERS COVERED.

THE POLICY MUST COVER AT LEAST 25 MEMBERS AT DATE OF ISSUE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 424.

In the introductory language of subsection (c)(1) of this section, the reference
to the "credit union" is substituted for the former reference to the
"policyholder" in light of subsection (a)(2) of this section.

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