Article 4.--GENERAL PROVISIONS RELATING TO LIFE INSURANCE COMPANIES
40-433.Group life insurance; types of policies andrequirements.No policy of group life insurance shall be delivered in this stateunless it conforms to one of the following descriptions:
(1) A policy issued by an insurance company organized under the lawsof the state of Kansas on its employees and agents, which agents for thepurpose of this act only shall be deemed employees, the beneficiariesunder such policies to be persons designated by each insured, or apolicy issued to an employer, or to the trustees of a fund establishedby an employer, which employer or trustees shall be deemed thepolicyholder, to insure employees of the employer for the benefit ofpersons other than the employer, both subject to the followingrequirements: (a) The employees eligible for insurance under the policyshall be all of the employees of the employer, or all of any class orclasses thereof determined by conditions pertaining to their employment.The policy may provide that the term "employees" shall include theemployees of one or more subsidiary corporations, and the employees,individual proprietors, and partners of one or more affiliatedcorporations, proprietors or partnerships if the business of theemployer and of such affiliated corporations, proprietors orpartnerships is under common control through stock ownership, contractor otherwise. The policy may provide that the term "employees" shallinclude the individual proprietor or partners if the employer is anindividual proprietor or a partnership. The policy may provide that theterm "employees" shall include retired employees. No director of acorporate employer shall be eligible for insurance under the policyunless such person is otherwise eligible as a bona fide employee of thecorporation by performing services other than the usual duties of adirector. No individual proprietor or partner shall be eligible forinsurance under the policy unless the proprietor orpartner is actively engaged in anddevotes a substantial part of their time to the conductof the business of the proprietor or partnership. A policy issued toinsure the employees of a public body may provide that the term "employees"shall include elected or appointed officials. (b) The premium for thepolicy shall be paid by the policyholder, either wholly from theemployer's funds or funds contributed by the employer,or partly from suchfunds and partly from funds contributed by the insured employees. Nopolicy shall be issued on which the entire premium is to be derived fromfunds contributed by the insured employees. A policy on which part ofthe premium is to be derived from funds contributed by the insuredemployees may be placed in force only if at least 75% of the then eligibleemployees, excluding any as to whom evidenceof individual insurability is not satisfactory to the insurer, elect tomake the required contribution. A policy on which no part of the premiumis to be derived from funds contributed by the insured employeesshall insure all eligible employees, or all except any as to whom evidence ofindividual insurability is not satisfactory to the insurer. (c) Thepolicy shall cover at least two employees atdate of issue. (d) Theamounts of insurance under the policy shall be based upon some plan,precluding individual selection either by the employees or by theemployer or trustees.
(2) A policy issued to a creditor, who shall be deemed thepolicyholder, to insure debtors of the creditor, subject to thefollowing requirements: (a) The debtors eligible for insurance under thepolicy shall be all of the debtors of the creditor whose indebtedness isrepayable in installments, or all of any class or classes thereofdetermined by conditions pertaining to the indebtedness or to thepurchase giving rise to the indebtedness. (b) The premium for the policyshall be paid by the policyholder, either from the creditor's funds orfrom charges collected from the insured debtors, or from both. A policyon which part or all of the premium is to be derived from the collectionfrom the insured debtors of identifiable charges not required ofuninsured debtors shall not include, in the class or classes of debtorseligible for insurance, debtors under obligations outstanding at itsdate of issue without evidence of individual insurability unless atleast 75% of the then eligible debtors elect topay the required charges. A policy on which no part of the premium is tobe derived from the collection of such identifiable charges shall insureall eligible debtors, or all except any as to whom evidence ofindividual insurability is not satisfactory to the insurer. (c) Thepolicy may be issued only if the group of eligible debtors is thenreceiving new entrants at the rate of at least 100 personsyearly, or may reasonably be expected to receive at least 100 new entrantsduring the first policy year, and only if the policyreserves to the insurer the right to require evidence of individualinsurability if less than 75% of the new entrantsbecome insured. (d) The amount of insurance on the life of any debtorshall at no time exceed the amount owedby that debtor which is repayable in installments to the creditor. (e) Theinsurance shallbe payable to the policyholder. Such payment shall reduce or extinguishthe unpaid indebtedness of the debtor to the extent of such payment.
(3) A policy issued to a labor union, which shall be deemed thepolicyholder, to insure members of such union for the benefit of personsother than the union or any of its officials, representatives or agents,subject to the following requirements: (a) The members eligible forinsurance under the policy shall be all of the members of the union, orall of any class or classes thereof determined by conditions pertainingto their employment, or to membership in the union, or both.
(b) The premium for the policy shall be paid by the policyholder,either wholly from the union's funds, or partly from such funds andpartly from funds contributed by the insured members specifically fortheir insurance. No policy shall be issued on which the entire premium isto be derived from funds contributed by the insured members specificallyfor their insurance. A policy on which part of the premium is to bederived from funds contributed by the insured members specifically fortheir insurance may be placed in force only if at least 75% of the theneligible members excluding any as to whomevidence of individual insurability is not satisfactory to the insurer,elect to make the required contributions. A policy on which no part ofthe premium is to be derived from funds contributed by the insuredmembers specifically for their insurance shall insure all eligiblemembers, or all except any as to whom evidence of individualinsurability is not satisfactory to the insurer.
(c) The policy shall cover at least25 members at dateof issue.
(d) The amounts of insurance under the policy shall be based uponsome plan precluding individual selection either by the members or bythe union.
(4) A policy issued to the trustees of a fund established in thisstate by two or more employers if a majority of the employees to beinsured of each employer are located within the state, or to thetrustees of a fund established by one or more labor unions, or by one ormore employers and one or more labor unions, which trustees shall bedeemed the policyholder, to insure employees of the employers or membersof the unions for the benefit of persons other than the employers or theunions, subject to the following requirements: (a) The persons eligiblefor insurance shall be all of the employees of the employers or all ofthe members of the unions, or all of any class or classes thereofdetermined by conditions pertaining to their employment, or tomembership in the unions, or to both. The policy may provide that theterm "employees" shall include retired employees and the individualproprietor or partners if any employer is an individual proprietor or apartnership. No director of a corporate employer shall be eligible forinsurance under the policy unless such person is otherwise eligible as abona fide employee of the corporation by performing services other thanthe usual duties of a director. No individual proprietor or partnershall be eligible for insurance under the policy unless theproprietor or partner is actively engaged in and devotes a substantialpart of their time tothe conduct of the business of the proprietor or partnership. The policymay provide that the term "employees" shall include the trustees ortheir employees, or both, if their duties are principally connected withsuch trusteeship. (b) The premium for the policy shall be paid by thetrustees either wholly from funds contributed by the employer oremployers of the insured persons, or by the union or unions, or by both,or partly from such funds and partly from funds contributed by theinsured employees. No policy shall be issued on which the entire premiumis to be derived from funds contributed by the insured persons. Thepolicy shall insure all eligible persons, or all except any as to whomevidence of individual insurability is not satisfactory to the insurer.(c) The policy shall cover at date of issue at least 100 personsand not less than an average of five persons per employerunit. (d) The amounts ofinsurance under the policy shall be based upon some plan precludingindividual selection either by the insured persons or by thepolicyholder, employers, or union.
(e) The requirements of paragraphs (b) and (d) of this subsectiongoverningemployer contributions and amounts of insurance shall not apply to avoluntary term life insurance policy issued on a group basis.
(5) A policy issued to an association which has been organized andis maintained for purposes other than that of obtaining insurance,insuring at least 25 members, employees, or employees ofmembers of the association for the benefit of persons other than theassociation or its officers. The term "employees" as used herein shallbe deemed to include retired employees. The premiums for the policies shall bepaidby the policyholder, either wholly from association funds, or fundscontributed by the members of such association or by employees of suchmembers or any combination thereof. The amounts of insurance under thepolicy shall be based upon some plan precluding individual selectioneither by the insured person or by the association or by the member.
(6) Any policy issued pursuant to this section may be extended toinsure the employees against loss due to the death of their spouses, theirchildren, their grandchildren, their spouse'schildren, their spouse's grandchildren, their parents, their spouse'sparents, or any class or classes thereof, subject tothefollowing requirements:
(a) The premium for the insurance shall be paid by the policyholder,either from the employer's funds or from funds contributed by theinsured employees, or from both. If any part of the premium is to bederived from funds contributed by the insured employees, the insurancewith respect to spouses, their children, theirgrandchildren, their spouse's children, their spouse's grandchildren, theirparents and their spouse's parents may be placed in force only if atleast 75% of the then eligible employees,excluding any as to whose family members' evidence of insurability is notsatisfactory to the insurer, elect to make the required contribution. Ifno part of the premium is to be derived from funds contributed by theemployees, all eligible employees, excluding any as to whose family members'evidence of insurability is not satisfactory to the insurer, shall beinsured with respect to their spouses, their children, theirgrandchildren, their spouse's children, their spouse's grandchildren, theirparents, their spouse's parents.
(b) The amounts of insurance shall be based upon some plan precludingindividual selection either by the employees or by the policyholder, oremployer and shall not exceed with respect to any spouse, childor parent 50%of the insurance on the life of such insuredemployee.
(c) Upon termination of the insurance with respect to the spouse ofan employee by reason of the employee's termination of employment ordeath, the spouse insured pursuant to this section shall have the sameconversion rights as to the insurance on such spouse'slife as is providedfor the employee under K.S.A. 40-434 and amendments thereto.
(d) Notwithstanding the provisions of K.S.A. 40-434 and amendmentsthereto only one certificate need be issued for delivery to an insured personif astatement concerning any dependent's coverage is included in suchcertificate.
(e) The requirements of paragraphs (a) and (b) of this subsectiongoverningparticipation, contribution by an employer and amounts of insurance fordependents shall not apply to a voluntary term life insurance policy issued ona group basis.
(7) A policy may be issued to any other group which the commissionerof insurance finds is the proper subject of a group life insurancepolicy or contract. Any such group shall be subject to any appropriateconditions or provisions relating thereto which the commissioner mayestablish or require, consistent with the provisions of this act, andsuch conditions and provisions shall be included in the policy orcontract.
Article 4.--GENERAL PROVISIONS RELATING TO LIFE INSURANCE COMPANIES
40-433.Group life insurance; types of policies andrequirements.No policy of group life insurance shall be delivered in this stateunless it conforms to one of the following descriptions:
(1) A policy issued by an insurance company organized under the lawsof the state of Kansas on its employees and agents, which agents for thepurpose of this act only shall be deemed employees, the beneficiariesunder such policies to be persons designated by each insured, or apolicy issued to an employer, or to the trustees of a fund establishedby an employer, which employer or trustees shall be deemed thepolicyholder, to insure employees of the employer for the benefit ofpersons other than the employer, both subject to the followingrequirements: (a) The employees eligible for insurance under the policyshall be all of the employees of the employer, or all of any class orclasses thereof determined by conditions pertaining to their employment.The policy may provide that the term "employees" shall include theemployees of one or more subsidiary corporations, and the employees,individual proprietors, and partners of one or more affiliatedcorporations, proprietors or partnerships if the business of theemployer and of such affiliated corporations, proprietors orpartnerships is under common control through stock ownership, contractor otherwise. The policy may provide that the term "employees" shallinclude the individual proprietor or partners if the employer is anindividual proprietor or a partnership. The policy may provide that theterm "employees" shall include retired employees. No director of acorporate employer shall be eligible for insurance under the policyunless such person is otherwise eligible as a bona fide employee of thecorporation by performing services other than the usual duties of adirector. No individual proprietor or partner shall be eligible forinsurance under the policy unless the proprietor orpartner is actively engaged in anddevotes a substantial part of their time to the conductof the business of the proprietor or partnership. A policy issued toinsure the employees of a public body may provide that the term "employees"shall include elected or appointed officials. (b) The premium for thepolicy shall be paid by the policyholder, either wholly from theemployer's funds or funds contributed by the employer,or partly from suchfunds and partly from funds contributed by the insured employees. Nopolicy shall be issued on which the entire premium is to be derived fromfunds contributed by the insured employees. A policy on which part ofthe premium is to be derived from funds contributed by the insuredemployees may be placed in force only if at least 75% of the then eligibleemployees, excluding any as to whom evidenceof individual insurability is not satisfactory to the insurer, elect tomake the required contribution. A policy on which no part of the premiumis to be derived from funds contributed by the insured employeesshall insure all eligible employees, or all except any as to whom evidence ofindividual insurability is not satisfactory to the insurer. (c) Thepolicy shall cover at least two employees atdate of issue. (d) Theamounts of insurance under the policy shall be based upon some plan,precluding individual selection either by the employees or by theemployer or trustees.
(2) A policy issued to a creditor, who shall be deemed thepolicyholder, to insure debtors of the creditor, subject to thefollowing requirements: (a) The debtors eligible for insurance under thepolicy shall be all of the debtors of the creditor whose indebtedness isrepayable in installments, or all of any class or classes thereofdetermined by conditions pertaining to the indebtedness or to thepurchase giving rise to the indebtedness. (b) The premium for the policyshall be paid by the policyholder, either from the creditor's funds orfrom charges collected from the insured debtors, or from both. A policyon which part or all of the premium is to be derived from the collectionfrom the insured debtors of identifiable charges not required ofuninsured debtors shall not include, in the class or classes of debtorseligible for insurance, debtors under obligations outstanding at itsdate of issue without evidence of individual insurability unless atleast 75% of the then eligible debtors elect topay the required charges. A policy on which no part of the premium is tobe derived from the collection of such identifiable charges shall insureall eligible debtors, or all except any as to whom evidence ofindividual insurability is not satisfactory to the insurer. (c) Thepolicy may be issued only if the group of eligible debtors is thenreceiving new entrants at the rate of at least 100 personsyearly, or may reasonably be expected to receive at least 100 new entrantsduring the first policy year, and only if the policyreserves to the insurer the right to require evidence of individualinsurability if less than 75% of the new entrantsbecome insured. (d) The amount of insurance on the life of any debtorshall at no time exceed the amount owedby that debtor which is repayable in installments to the creditor. (e) Theinsurance shallbe payable to the policyholder. Such payment shall reduce or extinguishthe unpaid indebtedness of the debtor to the extent of such payment.
(3) A policy issued to a labor union, which shall be deemed thepolicyholder, to insure members of such union for the benefit of personsother than the union or any of its officials, representatives or agents,subject to the following requirements: (a) The members eligible forinsurance under the policy shall be all of the members of the union, orall of any class or classes thereof determined by conditions pertainingto their employment, or to membership in the union, or both.
(b) The premium for the policy shall be paid by the policyholder,either wholly from the union's funds, or partly from such funds andpartly from funds contributed by the insured members specifically fortheir insurance. No policy shall be issued on which the entire premium isto be derived from funds contributed by the insured members specificallyfor their insurance. A policy on which part of the premium is to bederived from funds contributed by the insured members specifically fortheir insurance may be placed in force only if at least 75% of the theneligible members excluding any as to whomevidence of individual insurability is not satisfactory to the insurer,elect to make the required contributions. A policy on which no part ofthe premium is to be derived from funds contributed by the insuredmembers specifically for their insurance shall insure all eligiblemembers, or all except any as to whom evidence of individualinsurability is not satisfactory to the insurer.
(c) The policy shall cover at least25 members at dateof issue.
(d) The amounts of insurance under the policy shall be based uponsome plan precluding individual selection either by the members or bythe union.
(4) A policy issued to the trustees of a fund established in thisstate by two or more employers if a majority of the employees to beinsured of each employer are located within the state, or to thetrustees of a fund established by one or more labor unions, or by one ormore employers and one or more labor unions, which trustees shall bedeemed the policyholder, to insure employees of the employers or membersof the unions for the benefit of persons other than the employers or theunions, subject to the following requirements: (a) The persons eligiblefor insurance shall be all of the employees of the employers or all ofthe members of the unions, or all of any class or classes thereofdetermined by conditions pertaining to their employment, or tomembership in the unions, or to both. The policy may provide that theterm "employees" shall include retired employees and the individualproprietor or partners if any employer is an individual proprietor or apartnership. No director of a corporate employer shall be eligible forinsurance under the policy unless such person is otherwise eligible as abona fide employee of the corporation by performing services other thanthe usual duties of a director. No individual proprietor or partnershall be eligible for insurance under the policy unless theproprietor or partner is actively engaged in and devotes a substantialpart of their time tothe conduct of the business of the proprietor or partnership. The policymay provide that the term "employees" shall include the trustees ortheir employees, or both, if their duties are principally connected withsuch trusteeship. (b) The premium for the policy shall be paid by thetrustees either wholly from funds contributed by the employer oremployers of the insured persons, or by the union or unions, or by both,or partly from such funds and partly from funds contributed by theinsured employees. No policy shall be issued on which the entire premiumis to be derived from funds contributed by the insured persons. Thepolicy shall insure all eligible persons, or all except any as to whomevidence of individual insurability is not satisfactory to the insurer.(c) The policy shall cover at date of issue at least 100 personsand not less than an average of five persons per employerunit. (d) The amounts ofinsurance under the policy shall be based upon some plan precludingindividual selection either by the insured persons or by thepolicyholder, employers, or union.
(e) The requirements of paragraphs (b) and (d) of this subsectiongoverningemployer contributions and amounts of insurance shall not apply to avoluntary term life insurance policy issued on a group basis.
(5) A policy issued to an association which has been organized andis maintained for purposes other than that of obtaining insurance,insuring at least 25 members, employees, or employees ofmembers of the association for the benefit of persons other than theassociation or its officers. The term "employees" as used herein shallbe deemed to include retired employees. The premiums for the policies shall bepaidby the policyholder, either wholly from association funds, or fundscontributed by the members of such association or by employees of suchmembers or any combination thereof. The amounts of insurance under thepolicy shall be based upon some plan precluding individual selectioneither by the insured person or by the association or by the member.
(6) Any policy issued pursuant to this section may be extended toinsure the employees against loss due to the death of their spouses, theirchildren, their grandchildren, their spouse'schildren, their spouse's grandchildren, their parents, their spouse'sparents, or any class or classes thereof, subject tothefollowing requirements:
(a) The premium for the insurance shall be paid by the policyholder,either from the employer's funds or from funds contributed by theinsured employees, or from both. If any part of the premium is to bederived from funds contributed by the insured employees, the insurancewith respect to spouses, their children, theirgrandchildren, their spouse's children, their spouse's grandchildren, theirparents and their spouse's parents may be placed in force only if atleast 75% of the then eligible employees,excluding any as to whose family members' evidence of insurability is notsatisfactory to the insurer, elect to make the required contribution. Ifno part of the premium is to be derived from funds contributed by theemployees, all eligible employees, excluding any as to whose family members'evidence of insurability is not satisfactory to the insurer, shall beinsured with respect to their spouses, their children, theirgrandchildren, their spouse's children, their spouse's grandchildren, theirparents, their spouse's parents.
(b) The amounts of insurance shall be based upon some plan precludingindividual selection either by the employees or by the policyholder, oremployer and shall not exceed with respect to any spouse, childor parent 50%of the insurance on the life of such insuredemployee.
(c) Upon termination of the insurance with respect to the spouse ofan employee by reason of the employee's termination of employment ordeath, the spouse insured pursuant to this section shall have the sameconversion rights as to the insurance on such spouse'slife as is providedfor the employee under K.S.A. 40-434 and amendments thereto.
(d) Notwithstanding the provisions of K.S.A. 40-434 and amendmentsthereto only one certificate need be issued for delivery to an insured personif astatement concerning any dependent's coverage is included in suchcertificate.
(e) The requirements of paragraphs (a) and (b) of this subsectiongoverningparticipation, contribution by an employer and amounts of insurance fordependents shall not apply to a voluntary term life insurance policy issued ona group basis.
(7) A policy may be issued to any other group which the commissionerof insurance finds is the proper subject of a group life insurancepolicy or contract. Any such group shall be subject to any appropriateconditions or provisions relating thereto which the commissioner mayestablish or require, consistent with the provisions of this act, andsuch conditions and provisions shall be included in the policy orcontract.
Article 4.--GENERAL PROVISIONS RELATING TO LIFE INSURANCE COMPANIES
40-433.Group life insurance; types of policies andrequirements.No policy of group life insurance shall be delivered in this stateunless it conforms to one of the following descriptions:
(1) A policy issued by an insurance company organized under the lawsof the state of Kansas on its employees and agents, which agents for thepurpose of this act only shall be deemed employees, the beneficiariesunder such policies to be persons designated by each insured, or apolicy issued to an employer, or to the trustees of a fund establishedby an employer, which employer or trustees shall be deemed thepolicyholder, to insure employees of the employer for the benefit ofpersons other than the employer, both subject to the followingrequirements: (a) The employees eligible for insurance under the policyshall be all of the employees of the employer, or all of any class orclasses thereof determined by conditions pertaining to their employment.The policy may provide that the term "employees" shall include theemployees of one or more subsidiary corporations, and the employees,individual proprietors, and partners of one or more affiliatedcorporations, proprietors or partnerships if the business of theemployer and of such affiliated corporations, proprietors orpartnerships is under common control through stock ownership, contractor otherwise. The policy may provide that the term "employees" shallinclude the individual proprietor or partners if the employer is anindividual proprietor or a partnership. The policy may provide that theterm "employees" shall include retired employees. No director of acorporate employer shall be eligible for insurance under the policyunless such person is otherwise eligible as a bona fide employee of thecorporation by performing services other than the usual duties of adirector. No individual proprietor or partner shall be eligible forinsurance under the policy unless the proprietor orpartner is actively engaged in anddevotes a substantial part of their time to the conductof the business of the proprietor or partnership. A policy issued toinsure the employees of a public body may provide that the term "employees"shall include elected or appointed officials. (b) The premium for thepolicy shall be paid by the policyholder, either wholly from theemployer's funds or funds contributed by the employer,or partly from suchfunds and partly from funds contributed by the insured employees. Nopolicy shall be issued on which the entire premium is to be derived fromfunds contributed by the insured employees. A policy on which part ofthe premium is to be derived from funds contributed by the insuredemployees may be placed in force only if at least 75% of the then eligibleemployees, excluding any as to whom evidenceof individual insurability is not satisfactory to the insurer, elect tomake the required contribution. A policy on which no part of the premiumis to be derived from funds contributed by the insured employeesshall insure all eligible employees, or all except any as to whom evidence ofindividual insurability is not satisfactory to the insurer. (c) Thepolicy shall cover at least two employees atdate of issue. (d) Theamounts of insurance under the policy shall be based upon some plan,precluding individual selection either by the employees or by theemployer or trustees.
(2) A policy issued to a creditor, who shall be deemed thepolicyholder, to insure debtors of the creditor, subject to thefollowing requirements: (a) The debtors eligible for insurance under thepolicy shall be all of the debtors of the creditor whose indebtedness isrepayable in installments, or all of any class or classes thereofdetermined by conditions pertaining to the indebtedness or to thepurchase giving rise to the indebtedness. (b) The premium for the policyshall be paid by the policyholder, either from the creditor's funds orfrom charges collected from the insured debtors, or from both. A policyon which part or all of the premium is to be derived from the collectionfrom the insured debtors of identifiable charges not required ofuninsured debtors shall not include, in the class or classes of debtorseligible for insurance, debtors under obligations outstanding at itsdate of issue without evidence of individual insurability unless atleast 75% of the then eligible debtors elect topay the required charges. A policy on which no part of the premium is tobe derived from the collection of such identifiable charges shall insureall eligible debtors, or all except any as to whom evidence ofindividual insurability is not satisfactory to the insurer. (c) Thepolicy may be issued only if the group of eligible debtors is thenreceiving new entrants at the rate of at least 100 personsyearly, or may reasonably be expected to receive at least 100 new entrantsduring the first policy year, and only if the policyreserves to the insurer the right to require evidence of individualinsurability if less than 75% of the new entrantsbecome insured. (d) The amount of insurance on the life of any debtorshall at no time exceed the amount owedby that debtor which is repayable in installments to the creditor. (e) Theinsurance shallbe payable to the policyholder. Such payment shall reduce or extinguishthe unpaid indebtedness of the debtor to the extent of such payment.
(3) A policy issued to a labor union, which shall be deemed thepolicyholder, to insure members of such union for the benefit of personsother than the union or any of its officials, representatives or agents,subject to the following requirements: (a) The members eligible forinsurance under the policy shall be all of the members of the union, orall of any class or classes thereof determined by conditions pertainingto their employment, or to membership in the union, or both.
(b) The premium for the policy shall be paid by the policyholder,either wholly from the union's funds, or partly from such funds andpartly from funds contributed by the insured members specifically fortheir insurance. No policy shall be issued on which the entire premium isto be derived from funds contributed by the insured members specificallyfor their insurance. A policy on which part of the premium is to bederived from funds contributed by the insured members specifically fortheir insurance may be placed in force only if at least 75% of the theneligible members excluding any as to whomevidence of individual insurability is not satisfactory to the insurer,elect to make the required contributions. A policy on which no part ofthe premium is to be derived from funds contributed by the insuredmembers specifically for their insurance shall insure all eligiblemembers, or all except any as to whom evidence of individualinsurability is not satisfactory to the insurer.
(c) The policy shall cover at least25 members at dateof issue.
(d) The amounts of insurance under the policy shall be based uponsome plan precluding individual selection either by the members or bythe union.
(4) A policy issued to the trustees of a fund established in thisstate by two or more employers if a majority of the employees to beinsured of each employer are located within the state, or to thetrustees of a fund established by one or more labor unions, or by one ormore employers and one or more labor unions, which trustees shall bedeemed the policyholder, to insure employees of the employers or membersof the unions for the benefit of persons other than the employers or theunions, subject to the following requirements: (a) The persons eligiblefor insurance shall be all of the employees of the employers or all ofthe members of the unions, or all of any class or classes thereofdetermined by conditions pertaining to their employment, or tomembership in the unions, or to both. The policy may provide that theterm "employees" shall include retired employees and the individualproprietor or partners if any employer is an individual proprietor or apartnership. No director of a corporate employer shall be eligible forinsurance under the policy unless such person is otherwise eligible as abona fide employee of the corporation by performing services other thanthe usual duties of a director. No individual proprietor or partnershall be eligible for insurance under the policy unless theproprietor or partner is actively engaged in and devotes a substantialpart of their time tothe conduct of the business of the proprietor or partnership. The policymay provide that the term "employees" shall include the trustees ortheir employees, or both, if their duties are principally connected withsuch trusteeship. (b) The premium for the policy shall be paid by thetrustees either wholly from funds contributed by the employer oremployers of the insured persons, or by the union or unions, or by both,or partly from such funds and partly from funds contributed by theinsured employees. No policy shall be issued on which the entire premiumis to be derived from funds contributed by the insured persons. Thepolicy shall insure all eligible persons, or all except any as to whomevidence of individual insurability is not satisfactory to the insurer.(c) The policy shall cover at date of issue at least 100 personsand not less than an average of five persons per employerunit. (d) The amounts ofinsurance under the policy shall be based upon some plan precludingindividual selection either by the insured persons or by thepolicyholder, employers, or union.
(e) The requirements of paragraphs (b) and (d) of this subsectiongoverningemployer contributions and amounts of insurance shall not apply to avoluntary term life insurance policy issued on a group basis.
(5) A policy issued to an association which has been organized andis maintained for purposes other than that of obtaining insurance,insuring at least 25 members, employees, or employees ofmembers of the association for the benefit of persons other than theassociation or its officers. The term "employees" as used herein shallbe deemed to include retired employees. The premiums for the policies shall bepaidby the policyholder, either wholly from association funds, or fundscontributed by the members of such association or by employees of suchmembers or any combination thereof. The amounts of insurance under thepolicy shall be based upon some plan precluding individual selectioneither by the insured person or by the association or by the member.
(6) Any policy issued pursuant to this section may be extended toinsure the employees against loss due to the death of their spouses, theirchildren, their grandchildren, their spouse'schildren, their spouse's grandchildren, their parents, their spouse'sparents, or any class or classes thereof, subject tothefollowing requirements:
(a) The premium for the insurance shall be paid by the policyholder,either from the employer's funds or from funds contributed by theinsured employees, or from both. If any part of the premium is to bederived from funds contributed by the insured employees, the insurancewith respect to spouses, their children, theirgrandchildren, their spouse's children, their spouse's grandchildren, theirparents and their spouse's parents may be placed in force only if atleast 75% of the then eligible employees,excluding any as to whose family members' evidence of insurability is notsatisfactory to the insurer, elect to make the required contribution. Ifno part of the premium is to be derived from funds contributed by theemployees, all eligible employees, excluding any as to whose family members'evidence of insurability is not satisfactory to the insurer, shall beinsured with respect to their spouses, their children, theirgrandchildren, their spouse's children, their spouse's grandchildren, theirparents, their spouse's parents.
(b) The amounts of insurance shall be based upon some plan precludingindividual selection either by the employees or by the policyholder, oremployer and shall not exceed with respect to any spouse, childor parent 50%of the insurance on the life of such insuredemployee.
(c) Upon termination of the insurance with respect to the spouse ofan employee by reason of the employee's termination of employment ordeath, the spouse insured pursuant to this section shall have the sameconversion rights as to the insurance on such spouse'slife as is providedfor the employee under K.S.A. 40-434 and amendments thereto.
(d) Notwithstanding the provisions of K.S.A. 40-434 and amendmentsthereto only one certificate need be issued for delivery to an insured personif astatement concerning any dependent's coverage is included in suchcertificate.
(e) The requirements of paragraphs (a) and (b) of this subsectiongoverningparticipation, contribution by an employer and amounts of insurance fordependents shall not apply to a voluntary term life insurance policy issued ona group basis.
(7) A policy may be issued to any other group which the commissionerof insurance finds is the proper subject of a group life insurancepolicy or contract. Any such group shall be subject to any appropriateconditions or provisions relating thereto which the commissioner mayestablish or require, consistent with the provisions of this act, andsuch conditions and provisions shall be included in the policy orcontract.
