The lives of a group of
individuals may be insured under a policy issued to an employer,
or to the trustees of a fund established by an employer, which
employer or trustee is deemed the policyholder, insuring
employees of the employer for the benefit of persons other than
the employer, subject to the following requirements:
(1) The employees eligible for insurance under the policy
shall be all of the employees of the employer, or all of any
class or classes thereof determined by conditions pertaining to
their employment. The policy may provide that the term
"employees" shall include the employees of one or more subsidiary
corporations, and the employees, individual proprietors, and
partners of one or more affiliated corporations, proprietors or
partnerships if the business of the employer and of such
affiliated corporations, proprietors or partnerships is under
common control through stock ownership, contract or otherwise.
The policy may provide that the term "employees" shall include
the individual proprietor or partners if the employer is an
individual proprietor or a partnership. The policy may provide
that the term "employees" shall include retired employees.
(2) The premium for the policy shall be paid by the
policyholder, either wholly from the employer's funds or funds
contributed by him or her, or partly from such funds and partly
from funds contributed by the insured employees, or from funds
contributed entirely by the insured employees. A policy on which
no part of the premium is to be derived from funds contributed by
the insured employees must insure all eligible employees, or all
except any as to whom evidence of individual insurability is not
satisfactory to the insurer.
(3) The policy must cover at least two employees at date of
issue.
(4) The amounts of insurance under the policy must be based
upon some plan precluding individual selection either by the
employees or by the employer or trustees.
[2005 c 222 § 1; 1955 c 303 § 29; 1947 c 79 § .24.02; Rem. Supp. 1947 § 45.24.02.]