§431:10D-205  Trustee groups.  The lives
of a group of individuals may be insured under a policy issued to the trustees
of a fund established by two or more employers 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,
subject to the following requirements:



(1)  The persons eligible for insurance shall be all
of the employees of the employers or all of the members of the unions, or all
of any class or classes thereof.  The policy may provide that the term
employees shall include:



(A)  The employees of one or more subsidiary
corporations, and the employees, individual proprietors, and partners of one or
more affiliated corporations, proprietorships, or partnerships if the business
of the employer and the affiliated corporations, proprietorships or
partnerships are under common control;



(B)  The individual proprietor or partners if
the employer is an individual proprietor or a partnership;



(C)  Retired employees; and



(D)  The trustees or their employees, or both,
if their duties are principally connected with the trusteeship.



No director of a corporate employer shall be
eligible for insurance under the policy unless the person is otherwise eligible
as a bona fide employee of the corporation by performing services other than
the usual duties of a director.  No individual proprietor or partner shall be
eligible for insurance under the policy unless the individual proprietor or
partner is actively engaged in and devotes a substantial part of the individual
proprietor's or partner's time to the conduct of the business of the
proprietorship or partnership.



(2)  The premium for the policy shall be paid wholly
from funds contributed by the employer or employers of the insured persons, or
by the union or unions, or by both, or, except in the case of a policy issued
to the trustees of a fund established wholly by two or more employers, partly
from those funds and partly from funds contributed by the insured persons.  No
policy may be issued to the trustees of a fund established wholly by two or
more employers on which any part of the premium is to be derived from funds
contributed by the insured persons specifically for their insurance.  A policy
on which part of the premium is to be derived from funds contributed by the
insured persons specifically for their insurance may be placed in force only if
at least seventy-five per cent of the then eligible persons, excluding any as
to whom evidence of 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 persons specifically for their insurance must insure all eligible
persons, except those who reject that 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 must cover at date of issue at least
twenty-five persons and not less than an average of four persons per employer
unit; and if the fund is established by the members of an association of
employers the policy may be issued only if:



(A)  Either:



(i)  The participating employers constitute at
date of issue at least thirty-three and one-third per cent of those employer
members whose employees are not already covered for group life insurance, or



(ii)  The total number of persons covered at date
of issue exceeds two hundred; and



(B)  The policy shall not require that, if a
participating employer discontinues membership in the association, the
insurance of the employer's employees shall cease solely by reason of the
discontinuance.



(5)  The amounts of insurance under the policy must be
based upon some plan precluding individual selection either by the insured
persons or by the policyholder, employers, or unions. [L 1987, c 347, pt of §2;
am L 1990, c 38, §1]