§431:10D-207  Public employee associationgroups.  The lives of a group of individuals may be insured under a policyissued to an association of public employees, which shall be deemed thepolicyholder, to insure members of the association for the benefit of personsother than the association or any of its officials, subject to the followingrequirements:

(1)  The association shall have been formed forpurposes other than obtaining insurance and have when the policy is placed inforce, a membership in the classes eligible for insurance of not less thanseventy-five per cent of the number of employees eligible for membership insuch classes;

(2)  The members eligible for insurance under thepolicy shall be all of the members of the association, or all of any class orclasses thereof;

(3)  The premium for the policy shall be paid eitherfrom the association's own funds or from charges collected from the insuredmembers specifically for the insurance, or from both.  Any charges collectedfrom the insured members specifically for the insurance, and the dues of theassociation if they include the cost of insurance, may be collected throughdeductions by the employer from the salaries of the members.  The deductionsfrom salary may be paid by the employer to the association or directly to theinsurer.  No policy may be placed in force unless and until at leastseventy-five per cent of the then eligible members of the association,excluding any as to whom evidence of individual insurability is notsatisfactory to the insurer, have elected to be covered and have authorizedtheir employer to make the required deductions from salary, or have otherwiseassigned pay or arranged for payment of their individual contributions to theassociation.  Except as provided in paragraph (4), a policy on which no part ofthe premium is to be derived from funds contributed by the insured membersspecifically for their insurance shall insure all eligible members, exceptthose who reject such coverage in writing;

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

(5)  Charges collected from the insured membersspecifically for the insurance, and the dues of the association if they includethe cost of insurance, may be determined according to each attained age or innot fewer than four reasonably spaced attained age groups.  This provision,however, shall not preclude an average rate for the whole group with charges tothe individual members based on a schedule of insurance graded by rank, salarybracket, or by length of service or seniority;

(6)  The policy shall cover at least twenty-fivepersons at date of issue; and

(7)  The amounts of insurance under the policy shallbe based upon some plan precluding individual selection either by the membersor by the association.

As used in this section, "publicemployees" means employees of the United States government, any state, anypolitical subdivision, instrumentality, department, bureau, board, or commissionof the United States government or any state, or the national guard as anassociation in nature under its existing form. [L 1987, c 347, pt of §2; am L2004, c 122, §50]