[17-201.

(a) (1) Subject to the requirements of this section, the lives of a group of
individuals may be insured under a policy issued to an 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) (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) (1) The employer or 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.

(2) A policy may not be issued on which the entire premium is to be paid
from funds contributed by the insured employees.

(3) A policy on which the premium is to be paid partly from funds
contributed by the insured employees may be placed in force only if at least 75% of the
eligible employees, other than those who have evidence of individual insurability that
is unsatisfactory to the insurer, elect to make the required contributions.