(4) A policy on which no part of the premium is paid from funds
contributed by the insured employees must insure:

(i) all eligible employees; or

(ii) all eligible employees other than those who have evidence of
individual insurability that is unsatisfactory to the insurer.

(d) The policy must cover at least ten employees at date of issue.

(e) The amounts of insurance under the policy must be based on a plan that
precludes individual choice by the employees or by the employer or trustees.]

17-201.

(A) SUBJECT TO THE REQUIREMENTS OF THIS SECTION, A POLICY MAY BE
ISSUED TO AN EMPLOYER, OR TO THE TRUSTEES OF A FUND ESTABLISHED BY AN
EMPLOYER, IN WHICH THE EMPLOYER OR TRUSTEES SHALL BE DEEMED THE
POLICYHOLDER, TO INSURE EMPLOYEES OF THE EMPLOYER FOR THE BENEFIT OF
PERSONS OTHER THAN THE EMPLOYER

(B) (1) THE EMPLOYEES ELIGIBLE FOR INSURANCE UNDER THE POLICY
SHALL BE ALL OF THE EMPLOYEES OF THE EMPLOYER, OR ALL OR ANY CLASS OR
CLASSES OF EMPLOYEES.

(2) THE POLICY MAY PROVIDE THAT THE TERM "EMPLOYEES" SHALL
INCLUDE:

(I) THE EMPLOYEES OF ONE OR MORE SUBSIDIARY
CORPORATIONS, AND THE EMPLOYEES, INDIVIDUAL PROPRIETORS, AND PARTNERS
OF ONE OR MORE AFFILIATED CORPORATIONS, PROPRIETORSHIPS, OR
PARTNERSHIPS IF THE BUSINESS OF THE EMPLOYER AND IF AND OF THE
AFFILIATED CORPORATIONS, PROPRIETORSHIPS, OR PARTNERSHIPS IS UNDER
COMMON CONTROL; AND

(II) THE INDIVIDUAL PROPRIETOR OR PARTNERS IF THE
EMPLOYER IS AN INDIVIDUAL PROPRIETORSHIP OR PARTNERSHIP.

(3) THE POLICY MAY PROVIDE THAT THE TERM "EMPLOYEES" MAY
INCLUDE RETIRED EMPLOYEES, FORMER EMPLOYEES, AND DIRECTORS OF A
CORPORATE EMPLOYER

(4) A POLICY ISSUED TO INSURE THE EMPLOYEES OF A PUBLIC BODY
MAY PROVIDE THAT THE TERM "EMPLOYEES" SHALL INCLUDE ELECTED OR
APPOINTED OFFICIALS.

(C) (1) THE PREMIUM FOR THE POLICY SHALL BE PAID EITHER FROM THE
EMPLOYER'S FUNDS, OR FROM FUNDS CONTRIBUTED BY THE INSURED EMPLOYEES,
OR FROM BOTH.

(2) EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS SUBSECTION, A
POLICY ON WHICH NO PART OF THE PREMIUM IS TO BE DERIVED FROM FUNDS