(ii) pay the premium for the policy wholly or partly from funds
contributed by a municipal corporation that is a public employer as authorized by the
charter of the municipal corporation or as otherwise authorized by law.

(3) A policy issued to insure employees of a public employer 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.

(4) A policy issued to insure members of a public employees association
on which the premium is to be paid wholly or 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, or at least 600 of the eligible
members, elect to make the required contributions.

(5) A policy issued to insure members of a public employees association
on which no part of the premium is paid from funds contributed by 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) (1) THE PREMIUM FOR THE POLICY SHALL BE PAID FROM FUNDS,
CONTRIBUTED BY THE PUBLIC EMPLOYER OR PUBLIC EMPLOYEES ASSOCIATION, OR
BY BOTH, OR FROM FUNDS CONTRIBUTED BY THE COVERED PERSONS OR FROM
BOTH THE COVERED PERSONS AND THE PUBLIC EMPLOYER OR PUBLIC EMPLOYEES
ASSOCIATION.

(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.

(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

(4) A PUBLIC EMPLOYER MAY REQUIRE WRITTEN AUTHORIZATION
FROM AN EMPLOYEE TO DEDUCT FROM THE EMPLOYEE'S SALARY THE REQUIRED
CONTRIBUTIONS FOR THE PREMIUM.

[(e) (1) A policy issued to insure employees of a public employer must cover
at least ten employees at date of issue.

(2) A policy issued to insure members of a public employees association
must cover at least 100 members at date of issue.]