§431:10D-211  Credit union groups.  The
lives of the members of a credit union may be insured under a policy issued to
the credit union that shall be deemed the policyholder to insure members of the
credit union for the benefit of persons other than the credit union or any of
its officials, subject to the following requirements:



(1)  Except for paragraph (2), the members eligible
for insurance under the policy shall be all of the members of the credit union;



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



(3)  The premiums for the policy shall be paid by the
policyholder, either from the credit union's own funds or from charges
collected from the insured members specifically for the insurance, or from
both; provided that when the premium is paid by the members, or by the credit
union and its members jointly, at least seventy-five per cent of the then
eligible members, excluding any as to whom evidence of insurability is not
satisfactory to the insurer, shall elect to make the required contributions;
and



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



As used in this section, "credit
union" means a credit union chartered under the provisions of the Federal
Credit Union Act or article 10 of chapter 412. [L 1987, c 347, pt of §2; am L
1993, c 350, §17; am L 2004, c 122, §52]