§431:10D-204  Labor union groups.  Thelives of a group of individuals may be insured under a policy issued to a laborunion, which shall be deemed the policyholder, to insure members of the unionfor the benefit of persons other than the union or any of its officials,representatives, or agents, subject to the following requirements:

(1)  The members eligible for insurance under thepolicy shall be all of the members of the union, or all of any class or classesthereof;

(2)  The premium for the policy shall be paid eitherwholly from the union's funds, or partly from such funds and partly from fundscontributed by the insured members specifically for their insurance.  No policymay be issued on which the entire premium is to be derived from funds contributedby the insured members specifically for their insurance.  A policy on whichpart of the premium is to be derived from funds contributed by the insuredmembers specifically for their insurance may be placed in force only if atleast seventy-five per cent of the then eligible members, excluding any as towhom evidence of individual insurability is not satisfactory to the insurer,elect to make the required contributions.  Except as provided in paragraph (3),a policy on which no part of the premium is to be derived from fundscontributed by the insured members specifically for their insurance shallinsure all eligible members, except those who reject such coverage in writing;

(3)  An insurer may exclude or limit the coverage onany person as to whom evidence of individual insurability is not satisfactoryto the insurer;

(4)  The policy shall cover at least twenty-fivemembers at date of issue; and

(5)  The amount of insurance under the policy shall bebased upon some plan precluding individual selection either by the members orby the union. [L 1987, c 347, pt of §2; am L 2004, c 122, §49]