§431:10D-207  Public employee association
groups.  The lives of a group of individuals may be insured under a policy
issued to an association of public employees, which shall be deemed the
policyholder, to insure members of the association for the benefit of persons
other than the association or any of its officials, subject to the following
requirements:



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



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



(3)  The premium for the policy shall be paid either
from the association's own funds or from charges collected from the insured
members specifically for the insurance, or from both.  Any charges collected
from the insured members specifically for the insurance, and the dues of the
association if they include the cost of insurance, may be collected through
deductions by the employer from the salaries of the members.  The deductions
from salary may be paid by the employer to the association or directly to the
insurer.  No policy may be placed in force unless and until at least
seventy-five per cent of the then eligible members of the association,
excluding any as to whom evidence of individual insurability is not
satisfactory to the insurer, have elected to be covered and have authorized
their employer to make the required deductions from salary, or have otherwise
assigned pay or arranged for payment of their individual contributions to the
association.  Except as provided in paragraph (4), 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;



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



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



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



(7)  The amounts of insurance under the policy shall
be based upon some plan precluding individual selection either by the members
or by the association.



As used in this section, "public
employees" means employees of the United States government, any state, any
political subdivision, instrumentality, department, bureau, board, or commission
of the United States government or any state, or the national guard as an
association in nature under its existing form. [L 1987, c 347, pt of §2; am L
2004, c 122, §50]