(e) The policy must cover at least 100 members at date of issue.

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

17-204.

(A) (1) SUBJECT TO THE REQUIREMENTS OF THIS SECTION, A POLICY MAY
BE ISSUED TO AN ASSOCIATION OR TO A TRUST OR TO THE TRUSTEES OF A FUND
ESTABLISHED, CREATED, OR MAINTAINED FOR THE BENEFIT OF MEMBERS OF ONE
OR MORE ASSOCIATIONS.

(2) THE ASSOCIATION OR ASSOCIATIONS:

(I) SHALL HAVE AT THE OUTSET A MINIMUM OF 100 PERSONS;

(II) SHALL HAVE BEEN ORGANIZED AND MAINTAINED IN GOOD
FAITH FOR PURPOSES OTHER THAN THAT OF OBTAINING INSURANCE;

(III) SHALL HAVE BEEN FN ACTIVE EXISTENCE FOR AT LEAST 2

YEARS; AND

(IV) SHALL HAVE A CONSTITUTION AND BYLAWS THAT PROVIDE

THAT:

1. THE ASSOCIATION OR ASSOCIATIONS HOLD REGULAR
MEETINGS NOT LESS THAN ANNUALLY TO FURTHER PURPOSES OF THE MEMBERS;

 2. EXCEPT FOR CREDIT UNIONS, THE ASSOCIATION OR

ASSOCIATIONS COLLECT DUES OR SOLICIT CONTRIBUTIONS FROM MEMBERS; AND

3. THE MEMBERS HAVE VOTING PRIVILEGES AND
REPRESENTATION ON THE GOVERNING BOARD AND COMMITTEES.

(B) THE POLICY MAY INSURE MEMBERS OF THE ASSOCIATION OR
ASSOCIATIONS, EMPLOYEES OF THE ASSOCIATION OR ASSOCIATIONS, OR
EMPLOYEES OF MEMBERS, OR ONE OR MORE OF THE PRECEDING OR ALL OF ANY
CLASS OR CLASSES OF MEMBERS OR EMPLOYEES FOR THE BENEFIT OF PERSONS
OTHER THAN THE EMPLOYEE'S, EMPLOYER

(C) (1) THE PREMIUM FOR THE POLICY SHALL BE PAID FROM FUNDS
CONTRIBUTED BY THE ASSOCIATION OR ASSOCIATIONS, OR BY EMPLOYER
MEMBERS, OR BY BOTH, OR FROM FUNDS CONTRIBUTED BY THE COVERED PERSONS
OR FROM BOTH THE COVERED PERSONS AND THE ASSOCIATION, ASSOCIATIONS, OR
EMPLOYER MEMBERS.

(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
CONTRIBUTED BY THE COVERED PERSONS SPECIFICALLY FOR THE INSURANCE
MUST INSURE ALL ELIGIBLE PERSONS, EXCEPT THOSE WHO REJECT THE COVERAGE
IN WRITING.