§431:10D-209  Professional association
groups.  The lives of a group of individuals may be insured under a policy
issued to an association of professional persons, 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 professional persons 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.  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 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;



(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;



(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, "professional
persons" means persons practicing a profession requiring examination and
licensing under chapters 448, 453, 464, 466, and 605. [L 1987, c 347, pt of §2;
am L 2004, c 122, §51]