20-1256

20-1256. Association groups

The lives of a group of individuals may be insured under a policy issued to an
association, or to a trust or to the trustee of a fund established, created or maintained
for the benefit of one or more associations. The association, trust or trustee shall be
deemed the policyholder, to insure members of the association or associations, employees
of the association or associations and employees of members of the association or
associations for the benefit of persons other than the association or associations or any
of its officials, representatives or agents, subject to the following requirements:

1. The association or associations must have a constitution and bylaws and must be
organized and maintained in good faith for a purpose other than obtaining insurance.

2. The policy must cover at least two persons at the date of issue.

3. The policy may provide that the term "employees" shall include retired
employees.