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

(1)  The society must have been formed for purposesother than obtaining insurance and have, when the policy is placed in force, amembership in the classes eligible for insurance of not less than seventy-fiveper cent of the number of persons eligible for membership in such classes;

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

(3)  The premium for the policy shall be paid eitherfrom the society's own funds or from charges collected from the insured membersspecifically for the insurance, or from both.  No policy may be placed in forceunless and until at least seventy-five per cent of the then eligible members ofthe society, excluding any as to whom evidence of individual insurability isnot satisfactory to the insurer, have elected to be covered and have arrangedfor payment of their individual contributions to the society.  Except asprovided in paragraph (4), a policy on which no part of the premium is to bederived from funds contributed by the insured members specifically for theirinsurance must insure all eligible members;

(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 membersspecially for the insurance, and the dues of the society if they include thecost of insurance, may be determined according to each attained age or in notless than four reasonably spaced attained age groups;

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

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

As used in this section, the term "mutualbenefit society" has the same meaning as that ascribed to it in section432:1-104.  Any mutual benefit society participating in an insurance program underthis section shall be exempted from the requirements of chapter 432 relative tothe management or operation of its death or accident and health or sicknessbenefit funds with respect to the insurance program. [L 1987, c 347, pt of §2;am L 2003, c 212, §87]