20-1375. Franchise disability insurance
law
Disability insurance on a franchise plan is declared to be that form of disability
insurance issued to five or more employees of any corporation, copartnership or
individual employer or any governmental corporation, agency or department thereof, or to
ten or more members, employees or employees of members of any trade or professional
association or of a labor union or of any other association having had an active
existence for at least two years where such association or union has a constitution or
bylaws and is formed in good faith for purposes other than that of obtaining insurance,
where such persons, with or without their dependents, are issued the same form of an
individual policy varying only as to amounts and kinds of coverage applied for by such
persons under an arrangement whereby the premiums on the policies may be paid to the
insurer periodically by the employer, with or without payroll deductions, or by the
association for its members, or by some designated person acting on behalf of the
employer or association. The term "employees" as used herein may be deemed to include
the officers, managers and employees of the employer and the individual proprietor or
partners if the employer is an individual proprietor or partnership.
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