§431:10D-208  Mutual benefit society groups. 
The lives of a group of individuals may be insured under a policy issued to a
mutual benefit society, which shall be deemed the policyholder, to insure
members of the society for the benefit of persons other than the society or any
of its officials, subject to the following requirements:



(1)  The society must 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 persons eligible for membership in such classes;



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



(3)  The premium for the policy shall be paid either
from the society's own funds or from charges collected from the insured members
specifically for the insurance, or from both.  No policy may be placed in force
unless and until at least seventy-five per cent of the then eligible members of
the society, excluding any as to whom evidence of individual insurability is
not satisfactory to the insurer, have elected to be covered and have arranged
for payment of their individual contributions to the society.  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 must insure all eligible members;



(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
specially for the insurance, and the dues of the society if they include the
cost of insurance, may be determined according to each attained age or in not
less than four reasonably spaced attained age groups;



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



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



As used in this section, the term "mutual
benefit society" has the same meaning as that ascribed to it in section
432:1-104.  Any mutual benefit society participating in an insurance program under
this section shall be exempted from the requirements of chapter 432 relative to
the management or operation of its death or accident and health or sickness
benefit funds with respect to the insurance program. [L 1987, c 347, pt of §2;
am L 2003, c 212, §87]