§431:10D-204  Labor union groups.  The
lives of a group of individuals may be insured under a policy issued to a labor
union, which shall be deemed the policyholder, to insure members of the union
for 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 the
policy shall be all of the members of the union, or all of any class or classes
thereof;



(2)  The premium for the policy shall be paid either
wholly from the union's funds, or partly from such funds and partly from funds
contributed by the insured members specifically for their insurance.  No policy
may be issued on which the entire premium is to be derived from funds contributed
by the insured members specifically for their insurance.  A policy on which
part of the premium is to be derived from funds contributed by the insured
members specifically for their insurance may be placed in force only if at
least seventy-five per cent of the then eligible members, excluding any as to
whom 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 funds
contributed by the insured members specifically for their insurance shall
insure all eligible members, except those who reject such coverage in writing;



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



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



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