20-1401. Eligible groups
A. Group disability insurance is that form of disability insurance covering groups
of persons as defined below, with or without one or more members of their families or one
or more of their dependents, or covering one or more members of the families or one or
more dependents of persons in such groups, and issued upon the following basis:
1. Under a policy issued to an employer or trustees of a fund established by an
employer, who shall be deemed the policyholder, insuring at least two employees of the
employer, for the benefit of persons other than the employer. The term "employees" as
used herein shall be deemed to include the officers, managers and employees of the
employer, the individual proprietor or partners if the employer is an individual
proprietor or partnership, the officers, managers and employees of subsidiary or
affiliated corporations, the individual proprietors, partners and employees of
individuals and firms, if the business of the employer and such individual or firm is
under common control through stock ownership, contract or otherwise. The term
"employees" as used herein shall be deemed to include retired employees. A policy issued
to insure employees of a public body may provide that the term "employees" shall include
elected or appointed officials.
2. Under a policy issued to an association, including a labor union, which shall
have a constitution and bylaws and which has been organized and is maintained in good
faith for purposes other than that of obtaining insurance, insuring at least twenty-five
members, employees or employees of members of the association for the benefit of persons
other than the association or its officers or trustees. The term "employees" as used
herein shall be deemed to include retired employees.
3. 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, which trustees shall be deemed the policyholder, to insure
employees of the employers or members of the unions for the benefit of persons other than
the employers or the unions. The term "employees" as used herein shall 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. The
term "employees" as used herein shall be deemed to include retired employees. The policy
may provide that the term "employees" shall include the trustees or their employees, or
both, if their duties are principally connected with such trusteeship.
4. Under a policy issued to any persons or organizations to which a policy of group
life insurance may be delivered in this state, to insure any class or classes of
individuals that could be insured under such group life policy.
5. Under a policy issued to cover any other substantially similar group which, in
the discretion of the director, may be subject to the issuance of a group disability
policy or contract.
B. Nothing in this article validates any charge or practice illegal under any rule
of law or regulation governing usury, consumer lender loans, retail installment sales or
the like, or extends the application of any such rule of law or regulation to any
transaction not otherwise subject thereto.
|