(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

[17-203.

(a) (1) Subject to the requirements of this section, the lives of a group of
individuals may be insured under a policy issued to the trustees of a fund established
by two or more employers in the same industry or by one or more labor unions, or by
one or more employers and one or more labor unions, to cover employees of the
employers or members of the unions for the benefit of persons other than the
employers or unions.

(2) The trustees to which the policy is issued are deemed the
policyholder.

(b) (1) All employees of the employers or all members of the unions, or all of
any class or classes of employees or 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.

(2) The policy may provide that the term "employee" includes:

(i) a trustee or employee of the trustee or both if the duties of the
trustee or employee are principally connected with the trusteeship;

(ii) a sole proprietor if the employer is a sole proprietorship;

(iii) a partner if the employer is a partnership; and

(iv) a retired employee.

(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.