(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) (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:

(i) all eligible employees or members; or

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

(d) (1) The policy must cover at date of issue at least 100 individuals and not
less than an average of five individuals per employer unit.

(2) If the fund is established by members of an association of employers,
the policy may be issued if:

(i) either:

1. the participating employers constitute at date of issue at
least 60% of those employer members whose employees are not already covered for
group life insurance; or

2. the total number of individuals covered at date of issue

exceeds 600; and