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Session Laws, 1999
Volume 796, Page 3653   View pdf image
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CONTRIBUTED BY THE INSURED EMPLOYEES MUST INSURE ALL ELIGIBLE
EMPLOYEES, EXCEPT THOSE WHO REJECT THE COVERAGE IN WRITING.

(3) AN INSURER MAY EXCLUDE OR LIMIT THE COVERAGE ON ANY
PERSON AS TO WHOM EVIDENCE OF INDIVIDUAL INSURABILITY IS NOT
SATISFACTORY TO THE INSURER

[17-202.

(a) (1) Subject to the requirements of this section, the lives of a group of
individuals may be insured under a policy issued to a labor union to cover members of
the union for the benefit of persons other than the union or its officials,
representatives, or agents.

(2) The labor union to which the policy is issued is deemed the
policyholder.

(b) All members of the labor union, or all of any class or classes of members
determined by conditions pertaining to their employment or membership in the union
or both, are eligible for insurance under a policy issued in accordance with this
section.

(c) (1) The labor union shall pay the premium for the policy:

(i) wholly from the funds of the union; or

(ii) partly from the funds of the 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) The policy must cover at least 25 members at date of issue.

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

 

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Session Laws, 1999
Volume 796, Page 3653   View pdf image
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