§431:10D-209  Professional associationgroups.  The lives of a group of individuals may be insured under a policyissued to an association of professional persons, 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 professional persons eligible formembership in such 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.  No policy may be placedin force unless and until at least seventy-five per cent of the then eligiblemembers of the association, excluding any as to whom evidence of individualinsurability is not satisfactory to the insurer, have elected to be covered andhave arranged for payment of their individual contributions to the association.Except as provided in paragraph (4), a policy on which no part of the premiumis to be derived from funds contributed by the insured members specifically fortheir insurance shall 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 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;

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