Except as provided in § 38.2-3319.1, no policy of group life insurance shallbe delivered in this Commonwealth unless it conforms to one of the followingdescriptions:
A. A policy issued to an employer, or to the trustees of a fund establishedby an employer, which employer or trustees shall be deemed the policyholder,to insure employees of the employer for the benefit of persons other than theemployer, subject to the following requirements:
1. The employees eligible for insurance under the policy shall be all of theemployees of the employer, or all of any class or classes thereof. The policymay provide that the term "employees" include:
a. The employees of one or more subsidiary corporations, and the employees,individual proprietors, and partners of one or more affiliated corporations,proprietorships or partnerships if the business of the employer and of suchaffiliated corporations, proprietorships, or partnerships is under commoncontrol;
b. The individual proprietor or partners if the employer is an individualproprietorship or partnership;
c. Retired employees, former employees and directors of a corporate employer;or
d. If the policy is issued to insure the employees of a public body, electedor appointed officials.
2. The premium for the policy shall be paid either from the employer's fundsor from funds contributed by the insured employees, or from both. Except asprovided in subdivision 3 of this subsection, a policy on which no part ofthe premium is to be derived from funds contributed by the insured employeesmust insure all eligible employees, except those who reject such coverage inwriting.
3. An insurer may exclude or limit the coverage on any person as to whomevidence of individual insurability is not satisfactory to the insurer.
B. A policy which is:
1. Not subject to Chapter 37.1 (§ 38.2-3727 et seq.) of this title, and
2. Issued to a creditor or its parent holding company or to a trustee ortrustees or agent designated by two or more creditors, which creditor,holding company, affiliate, trustee, trustees or agent shall be deemed thepolicyholder, to insure debtors of the creditor, or creditors, subject to thefollowing requirements:
a. The debtors eligible for insurance under the policy shall be all of thedebtors of the creditor or creditors, or all of any class or classes thereof.The policy may provide that the term "debtors" includes:
(1) Borrowers of money or purchasers or lessees of goods, services, orproperty for which payment is arranged through a credit transaction;
(2) The debtors of one or more subsidiary corporations; and
(3) The debtors of one or more affiliated corporations, proprietorships, orpartnerships if the business of the policyholder and of such affiliatedcorporations, proprietorships, or partnerships is under common control.
b. The premium for the policy shall be paid either from the creditor's funds,or from charges collected from the insured debtors, or from both. Except asprovided in subdivision 3 of this subsection, a policy on which no part ofthe premium is to be derived from the funds contributed by insured debtorsspecifically for their insurance must insure all eligible debtors.
3. An insurer may exclude any debtors as to whom evidence of individualinsurability is not satisfactory to the insurer.
4. The amount of the insurance on the life of any debtor shall at no timeexceed the greater of the scheduled or actual amount of unpaid indebtednessto the creditor.
5. The insurance may be payable to the creditor or any successor to theright, title, and interest of the creditor. Such payment shall reduce orextinguish the unpaid indebtedness of the debtor to the extent of suchpayment and any excess of the insurance shall be payable to the estate of theinsured.
6. Notwithstanding the provisions of the above subsections, insurance onagricultural credit transaction commitments may be written up to the amountof the loan commitment on a nondecreasing or level term plan. Insurance oneducational credit transaction commitments may be written up to the amount ofthe loan commitment less the amount of any repayments made on the loan.
C. A policy issued to a labor union, or similar employee organization, whichshall be deemed to be the policyholder, to insure members of such union ororganization for the benefit of persons other than the union or organizationor any of its officials, representatives, or agents, subject to the followingrequirements:
1. The members eligible for insurance under the policy shall be all of themembers of the union or organization, or all of any class or classes thereof.
2. The premium for the policy shall be paid either from funds of the union ororganization, or from funds contributed by the insured members specificallyfor their insurance, or from both. Except as provided in subdivision 3 ofthis subsection, a policy on which no part of the premium is to be derivedfrom funds contributed by the insured members specifically for theirinsurance must insure all eligible members, except those who reject suchcoverage in writing.
3. An insurer may exclude or limit the coverage on any person as to whomevidence of individual insurability is not satisfactory to the insurer.
D. A policy issued to or for (i) a multiple employer welfare arrangement, arural electric cooperative, or a rural electric telephone cooperative asthese terms are defined in 29 U.S.C. § 1002, or (ii) a trust or to thetrustees of a fund established or adopted by two or more employers, or by oneor more labor unions or similar employee organizations, or by one or moreemployers and one or more labor unions or similar employee organizations,which trust or trustees shall be deemed the policyholder, to insure employeesof the employers or members of the unions or organizations for the benefit ofpersons other than the employees or the unions or organizations, subject tothe following requirements:
1. The persons eligible for insurance shall be all of the employees of theemployers or all of the members of the unions or organizations, or all of anyclass or classes thereof. The policy may provide that the term employeesincludes:
a. The employees of one or more subsidiary corporations, and the employees,individual proprietors, and partners of one or more affiliated corporations,proprietorships or partnerships if the business of the employer and of suchaffiliated corporations, proprietorships or partnerships is under commoncontrol;
b. The individual proprietor or partners if the employer is an individualproprietorship or partnership;
c. Retired employees, former employees and directors of a corporate employer;or
d. The trustees or their employees, or both, if their duties are principallyconnected with such trusteeship.
2. The premium for the policy shall be paid from funds contributed by theemployer or employers of the insured persons, or by the union or unions orsimilar employee organizations, or by both, or from funds contributed by theinsured persons or from both the insured persons and the employers or unionsor similar employee organizations. Except as provided in subdivision 3 ofthis subsection, a policy on which no part of the premium is to be derivedfrom funds contributed by the insured persons specifically for theirinsurance must insure all eligible persons, except those who reject suchcoverage in writing.
3. An insurer may exclude or limit the coverage on any person as to whomevidence of individual insurability is not satisfactory to the insurer.
E. 1. A policy issued to an association or to a trust or to the trustees of afund established, created, or maintained for the benefit of members of one ormore associations. The association or associations shall:
a. Have at the outset a minimum of 100 persons;
b. Have been organized and maintained in good faith for purposes other thanthat of obtaining insurance;
c. Have been in active existence for at least five years; and
d. Have a constitution and bylaws which provide that: (i) the association orassociations hold regular meetings not less than annually to further purposesof the members, (ii) except for credit unions, the association orassociations collect dues or solicit contributions from members, and (iii)the members have voting privileges and representation on the governing boardand committees.
2. The policy shall be subject to the following requirements:
a. The policy may insure members of such association or associations,employees thereof or employees of members, or one or more of the preceding orall of any class or classes thereof for the benefit of persons other than theemployee's employer.
b. The premium for the policy shall be paid from funds contributed by theassociation or associations, or by employer members, or by both, or fromfunds contributed by the covered persons or from both the covered persons andthe association, associations, or employer members.
c. Except as provided in clause d of this subdivision, a policy on which nopart of the premium is to be derived from funds contributed by the coveredpersons specifically for the insurance must insure all eligible persons,except those who reject such coverage in writing.
d. An insurer may exclude or limit the coverage on any person as to whomevidence of individual insurability is not satisfactory to the insurer.
F. A policy issued to a credit union or to a trustee or trustees or agentdesignated by two or more credit unions, which credit union, trustee,trustees, or agent shall be deemed policyholder, to insure members of suchcredit union or credit unions for the benefit of persons other than thecredit union or credit unions, trustee or trustees, or agent or any of theirofficials, subject to the following requirements:
1. The members eligible for insurance shall be all of the members of thecredit union or credit unions, or all of any class or classes thereof.
2. The premium for the policy shall be paid by the policyholder from thecredit union's funds and, except as provided in subdivision 3 of thissubsection, must insure all eligible members.
3. An insurer may exclude or limit the coverage on any member as to whomevidence of individual insurability is not satisfactory to the insurer.
G. A policy issued to an incorporated association as described in §38.2-4000, whose principal purpose is to assist its members in (i) financialplanning for their funerals and burials and (ii) obtaining insurance for thepayment, in whole or in part, for funeral, burial and other expenses. Theassociation shall be deemed the policyholder, to insure the members of theassociation for the benefit of persons other than the association. The policyshall be subject to the following requirements:
1. A policy may not be issued to an association in which membership isconditioned upon the member's designation at any time of a specific funeraldirector or cemetery as the beneficiary under the insurance, so as to deprivethe representatives or family of the deceased member from, or in any waycontrol them in, obtaining funeral supplies and services in an opencompetitive market.
2. The policy shall insure members of such association.
3. The premium for the policy shall be paid from funds contributed by theassociation, or from funds contributed by the covered persons, or both.
4. Except as provided in subdivision 5 of this subsection, a policy on whichno part of the premium is to be derived from funds contributed by the coveredpersons specifically for the insurance must insure all eligible personsexcept those who reject the coverage in writing.
5. An insurer may exclude or limit the coverage on any person as to whomevidence of individual insurability is not satisfactory to the insurer.
Except as provided in § 38.2-3319.1, no policy of group life insurance shallbe delivered in this Commonwealth unless it conforms to one of the followingdescriptions:
A. A policy issued to an employer, or to the trustees of a fund establishedby an employer, which employer or trustees shall be deemed the policyholder,to insure employees of the employer for the benefit of persons other than theemployer, subject to the following requirements:
1. The employees eligible for insurance under the policy shall be all of theemployees of the employer, or all of any class or classes thereof. The policymay provide that the term "employees" include:
a. The employees of one or more subsidiary corporations, and the employees,individual proprietors, and partners of one or more affiliated corporations,proprietorships or partnerships if the business of the employer and of suchaffiliated corporations, proprietorships, or partnerships is under commoncontrol;
b. The individual proprietor or partners if the employer is an individualproprietorship or partnership;
c. Retired employees, former employees and directors of a corporate employer;or
d. If the policy is issued to insure the employees of a public body, electedor appointed officials.
2. The premium for the policy shall be paid either from the employer's fundsor from funds contributed by the insured employees, or from both. Except asprovided in subdivision 3 of this subsection, a policy on which no part ofthe premium is to be derived from funds contributed by the insured employeesmust insure all eligible employees, except those who reject such coverage inwriting.
3. An insurer may exclude or limit the coverage on any person as to whomevidence of individual insurability is not satisfactory to the insurer.
B. A policy which is:
1. Not subject to Chapter 37.1 (§ 38.2-3727 et seq.) of this title, and
2. Issued to a creditor or its parent holding company or to a trustee ortrustees or agent designated by two or more creditors, which creditor,holding company, affiliate, trustee, trustees or agent shall be deemed thepolicyholder, to insure debtors of the creditor, or creditors, subject to thefollowing requirements:
a. The debtors eligible for insurance under the policy shall be all of thedebtors of the creditor or creditors, or all of any class or classes thereof.The policy may provide that the term "debtors" includes:
(1) Borrowers of money or purchasers or lessees of goods, services, orproperty for which payment is arranged through a credit transaction;
(2) The debtors of one or more subsidiary corporations; and
(3) The debtors of one or more affiliated corporations, proprietorships, orpartnerships if the business of the policyholder and of such affiliatedcorporations, proprietorships, or partnerships is under common control.
b. The premium for the policy shall be paid either from the creditor's funds,or from charges collected from the insured debtors, or from both. Except asprovided in subdivision 3 of this subsection, a policy on which no part ofthe premium is to be derived from the funds contributed by insured debtorsspecifically for their insurance must insure all eligible debtors.
3. An insurer may exclude any debtors as to whom evidence of individualinsurability is not satisfactory to the insurer.
4. The amount of the insurance on the life of any debtor shall at no timeexceed the greater of the scheduled or actual amount of unpaid indebtednessto the creditor.
5. The insurance may be payable to the creditor or any successor to theright, title, and interest of the creditor. Such payment shall reduce orextinguish the unpaid indebtedness of the debtor to the extent of suchpayment and any excess of the insurance shall be payable to the estate of theinsured.
6. Notwithstanding the provisions of the above subsections, insurance onagricultural credit transaction commitments may be written up to the amountof the loan commitment on a nondecreasing or level term plan. Insurance oneducational credit transaction commitments may be written up to the amount ofthe loan commitment less the amount of any repayments made on the loan.
C. A policy issued to a labor union, or similar employee organization, whichshall be deemed to be the policyholder, to insure members of such union ororganization for the benefit of persons other than the union or organizationor any of its officials, representatives, or agents, subject to the followingrequirements:
1. The members eligible for insurance under the policy shall be all of themembers of the union or organization, or all of any class or classes thereof.
2. The premium for the policy shall be paid either from funds of the union ororganization, or from funds contributed by the insured members specificallyfor their insurance, or from both. Except as provided in subdivision 3 ofthis subsection, a policy on which no part of the premium is to be derivedfrom funds contributed by the insured members specifically for theirinsurance must insure all eligible members, except those who reject suchcoverage in writing.
3. An insurer may exclude or limit the coverage on any person as to whomevidence of individual insurability is not satisfactory to the insurer.
D. A policy issued to or for (i) a multiple employer welfare arrangement, arural electric cooperative, or a rural electric telephone cooperative asthese terms are defined in 29 U.S.C. § 1002, or (ii) a trust or to thetrustees of a fund established or adopted by two or more employers, or by oneor more labor unions or similar employee organizations, or by one or moreemployers and one or more labor unions or similar employee organizations,which trust or trustees shall be deemed the policyholder, to insure employeesof the employers or members of the unions or organizations for the benefit ofpersons other than the employees or the unions or organizations, subject tothe following requirements:
1. The persons eligible for insurance shall be all of the employees of theemployers or all of the members of the unions or organizations, or all of anyclass or classes thereof. The policy may provide that the term employeesincludes:
a. The employees of one or more subsidiary corporations, and the employees,individual proprietors, and partners of one or more affiliated corporations,proprietorships or partnerships if the business of the employer and of suchaffiliated corporations, proprietorships or partnerships is under commoncontrol;
b. The individual proprietor or partners if the employer is an individualproprietorship or partnership;
c. Retired employees, former employees and directors of a corporate employer;or
d. The trustees or their employees, or both, if their duties are principallyconnected with such trusteeship.
2. The premium for the policy shall be paid from funds contributed by theemployer or employers of the insured persons, or by the union or unions orsimilar employee organizations, or by both, or from funds contributed by theinsured persons or from both the insured persons and the employers or unionsor similar employee organizations. Except as provided in subdivision 3 ofthis subsection, a policy on which no part of the premium is to be derivedfrom funds contributed by the insured persons specifically for theirinsurance must insure all eligible persons, except those who reject suchcoverage in writing.
3. An insurer may exclude or limit the coverage on any person as to whomevidence of individual insurability is not satisfactory to the insurer.
E. 1. A policy issued to an association or to a trust or to the trustees of afund established, created, or maintained for the benefit of members of one ormore associations. The association or associations shall:
a. Have at the outset a minimum of 100 persons;
b. Have been organized and maintained in good faith for purposes other thanthat of obtaining insurance;
c. Have been in active existence for at least five years; and
d. Have a constitution and bylaws which provide that: (i) the association orassociations hold regular meetings not less than annually to further purposesof the members, (ii) except for credit unions, the association orassociations collect dues or solicit contributions from members, and (iii)the members have voting privileges and representation on the governing boardand committees.
2. The policy shall be subject to the following requirements:
a. The policy may insure members of such association or associations,employees thereof or employees of members, or one or more of the preceding orall of any class or classes thereof for the benefit of persons other than theemployee's employer.
b. The premium for the policy shall be paid from funds contributed by theassociation or associations, or by employer members, or by both, or fromfunds contributed by the covered persons or from both the covered persons andthe association, associations, or employer members.
c. Except as provided in clause d of this subdivision, a policy on which nopart of the premium is to be derived from funds contributed by the coveredpersons specifically for the insurance must insure all eligible persons,except those who reject such coverage in writing.
d. An insurer may exclude or limit the coverage on any person as to whomevidence of individual insurability is not satisfactory to the insurer.
F. A policy issued to a credit union or to a trustee or trustees or agentdesignated by two or more credit unions, which credit union, trustee,trustees, or agent shall be deemed policyholder, to insure members of suchcredit union or credit unions for the benefit of persons other than thecredit union or credit unions, trustee or trustees, or agent or any of theirofficials, subject to the following requirements:
1. The members eligible for insurance shall be all of the members of thecredit union or credit unions, or all of any class or classes thereof.
2. The premium for the policy shall be paid by the policyholder from thecredit union's funds and, except as provided in subdivision 3 of thissubsection, must insure all eligible members.
3. An insurer may exclude or limit the coverage on any member as to whomevidence of individual insurability is not satisfactory to the insurer.
G. A policy issued to an incorporated association as described in §38.2-4000, whose principal purpose is to assist its members in (i) financialplanning for their funerals and burials and (ii) obtaining insurance for thepayment, in whole or in part, for funeral, burial and other expenses. Theassociation shall be deemed the policyholder, to insure the members of theassociation for the benefit of persons other than the association. The policyshall be subject to the following requirements:
1. A policy may not be issued to an association in which membership isconditioned upon the member's designation at any time of a specific funeraldirector or cemetery as the beneficiary under the insurance, so as to deprivethe representatives or family of the deceased member from, or in any waycontrol them in, obtaining funeral supplies and services in an opencompetitive market.
2. The policy shall insure members of such association.
3. The premium for the policy shall be paid from funds contributed by theassociation, or from funds contributed by the covered persons, or both.
4. Except as provided in subdivision 5 of this subsection, a policy on whichno part of the premium is to be derived from funds contributed by the coveredpersons specifically for the insurance must insure all eligible personsexcept those who reject the coverage in writing.
5. An insurer may exclude or limit the coverage on any person as to whomevidence of individual insurability is not satisfactory to the insurer.
Except as provided in § 38.2-3319.1, no policy of group life insurance shallbe delivered in this Commonwealth unless it conforms to one of the followingdescriptions:
A. A policy issued to an employer, or to the trustees of a fund establishedby an employer, which employer or trustees shall be deemed the policyholder,to insure employees of the employer for the benefit of persons other than theemployer, subject to the following requirements:
1. The employees eligible for insurance under the policy shall be all of theemployees of the employer, or all of any class or classes thereof. The policymay provide that the term "employees" include:
a. The employees of one or more subsidiary corporations, and the employees,individual proprietors, and partners of one or more affiliated corporations,proprietorships or partnerships if the business of the employer and of suchaffiliated corporations, proprietorships, or partnerships is under commoncontrol;
b. The individual proprietor or partners if the employer is an individualproprietorship or partnership;
c. Retired employees, former employees and directors of a corporate employer;or
d. If the policy is issued to insure the employees of a public body, electedor appointed officials.
2. The premium for the policy shall be paid either from the employer's fundsor from funds contributed by the insured employees, or from both. Except asprovided in subdivision 3 of this subsection, a policy on which no part ofthe premium is to be derived from funds contributed by the insured employeesmust insure all eligible employees, except those who reject such coverage inwriting.
3. An insurer may exclude or limit the coverage on any person as to whomevidence of individual insurability is not satisfactory to the insurer.
B. A policy which is:
1. Not subject to Chapter 37.1 (§ 38.2-3727 et seq.) of this title, and
2. Issued to a creditor or its parent holding company or to a trustee ortrustees or agent designated by two or more creditors, which creditor,holding company, affiliate, trustee, trustees or agent shall be deemed thepolicyholder, to insure debtors of the creditor, or creditors, subject to thefollowing requirements:
a. The debtors eligible for insurance under the policy shall be all of thedebtors of the creditor or creditors, or all of any class or classes thereof.The policy may provide that the term "debtors" includes:
(1) Borrowers of money or purchasers or lessees of goods, services, orproperty for which payment is arranged through a credit transaction;
(2) The debtors of one or more subsidiary corporations; and
(3) The debtors of one or more affiliated corporations, proprietorships, orpartnerships if the business of the policyholder and of such affiliatedcorporations, proprietorships, or partnerships is under common control.
b. The premium for the policy shall be paid either from the creditor's funds,or from charges collected from the insured debtors, or from both. Except asprovided in subdivision 3 of this subsection, a policy on which no part ofthe premium is to be derived from the funds contributed by insured debtorsspecifically for their insurance must insure all eligible debtors.
3. An insurer may exclude any debtors as to whom evidence of individualinsurability is not satisfactory to the insurer.
4. The amount of the insurance on the life of any debtor shall at no timeexceed the greater of the scheduled or actual amount of unpaid indebtednessto the creditor.
5. The insurance may be payable to the creditor or any successor to theright, title, and interest of the creditor. Such payment shall reduce orextinguish the unpaid indebtedness of the debtor to the extent of suchpayment and any excess of the insurance shall be payable to the estate of theinsured.
6. Notwithstanding the provisions of the above subsections, insurance onagricultural credit transaction commitments may be written up to the amountof the loan commitment on a nondecreasing or level term plan. Insurance oneducational credit transaction commitments may be written up to the amount ofthe loan commitment less the amount of any repayments made on the loan.
C. A policy issued to a labor union, or similar employee organization, whichshall be deemed to be the policyholder, to insure members of such union ororganization for the benefit of persons other than the union or organizationor any of its officials, representatives, or agents, subject to the followingrequirements:
1. The members eligible for insurance under the policy shall be all of themembers of the union or organization, or all of any class or classes thereof.
2. The premium for the policy shall be paid either from funds of the union ororganization, or from funds contributed by the insured members specificallyfor their insurance, or from both. Except as provided in subdivision 3 ofthis subsection, a policy on which no part of the premium is to be derivedfrom funds contributed by the insured members specifically for theirinsurance must insure all eligible members, except those who reject suchcoverage in writing.
3. An insurer may exclude or limit the coverage on any person as to whomevidence of individual insurability is not satisfactory to the insurer.
D. A policy issued to or for (i) a multiple employer welfare arrangement, arural electric cooperative, or a rural electric telephone cooperative asthese terms are defined in 29 U.S.C. § 1002, or (ii) a trust or to thetrustees of a fund established or adopted by two or more employers, or by oneor more labor unions or similar employee organizations, or by one or moreemployers and one or more labor unions or similar employee organizations,which trust or trustees shall be deemed the policyholder, to insure employeesof the employers or members of the unions or organizations for the benefit ofpersons other than the employees or the unions or organizations, subject tothe following requirements:
1. The persons eligible for insurance shall be all of the employees of theemployers or all of the members of the unions or organizations, or all of anyclass or classes thereof. The policy may provide that the term employeesincludes:
a. The employees of one or more subsidiary corporations, and the employees,individual proprietors, and partners of one or more affiliated corporations,proprietorships or partnerships if the business of the employer and of suchaffiliated corporations, proprietorships or partnerships is under commoncontrol;
b. The individual proprietor or partners if the employer is an individualproprietorship or partnership;
c. Retired employees, former employees and directors of a corporate employer;or
d. The trustees or their employees, or both, if their duties are principallyconnected with such trusteeship.
2. The premium for the policy shall be paid from funds contributed by theemployer or employers of the insured persons, or by the union or unions orsimilar employee organizations, or by both, or from funds contributed by theinsured persons or from both the insured persons and the employers or unionsor similar employee organizations. Except as provided in subdivision 3 ofthis subsection, a policy on which no part of the premium is to be derivedfrom funds contributed by the insured persons specifically for theirinsurance must insure all eligible persons, except those who reject suchcoverage in writing.
3. An insurer may exclude or limit the coverage on any person as to whomevidence of individual insurability is not satisfactory to the insurer.
E. 1. A policy issued to an association or to a trust or to the trustees of afund established, created, or maintained for the benefit of members of one ormore associations. The association or associations shall:
a. Have at the outset a minimum of 100 persons;
b. Have been organized and maintained in good faith for purposes other thanthat of obtaining insurance;
c. Have been in active existence for at least five years; and
d. Have a constitution and bylaws which provide that: (i) the association orassociations hold regular meetings not less than annually to further purposesof the members, (ii) except for credit unions, the association orassociations collect dues or solicit contributions from members, and (iii)the members have voting privileges and representation on the governing boardand committees.
2. The policy shall be subject to the following requirements:
a. The policy may insure members of such association or associations,employees thereof or employees of members, or one or more of the preceding orall of any class or classes thereof for the benefit of persons other than theemployee's employer.
b. The premium for the policy shall be paid from funds contributed by theassociation or associations, or by employer members, or by both, or fromfunds contributed by the covered persons or from both the covered persons andthe association, associations, or employer members.
c. Except as provided in clause d of this subdivision, a policy on which nopart of the premium is to be derived from funds contributed by the coveredpersons specifically for the insurance must insure all eligible persons,except those who reject such coverage in writing.
d. An insurer may exclude or limit the coverage on any person as to whomevidence of individual insurability is not satisfactory to the insurer.
F. A policy issued to a credit union or to a trustee or trustees or agentdesignated by two or more credit unions, which credit union, trustee,trustees, or agent shall be deemed policyholder, to insure members of suchcredit union or credit unions for the benefit of persons other than thecredit union or credit unions, trustee or trustees, or agent or any of theirofficials, subject to the following requirements:
1. The members eligible for insurance shall be all of the members of thecredit union or credit unions, or all of any class or classes thereof.
2. The premium for the policy shall be paid by the policyholder from thecredit union's funds and, except as provided in subdivision 3 of thissubsection, must insure all eligible members.
3. An insurer may exclude or limit the coverage on any member as to whomevidence of individual insurability is not satisfactory to the insurer.
G. A policy issued to an incorporated association as described in §38.2-4000, whose principal purpose is to assist its members in (i) financialplanning for their funerals and burials and (ii) obtaining insurance for thepayment, in whole or in part, for funeral, burial and other expenses. Theassociation shall be deemed the policyholder, to insure the members of theassociation for the benefit of persons other than the association. The policyshall be subject to the following requirements:
1. A policy may not be issued to an association in which membership isconditioned upon the member's designation at any time of a specific funeraldirector or cemetery as the beneficiary under the insurance, so as to deprivethe representatives or family of the deceased member from, or in any waycontrol them in, obtaining funeral supplies and services in an opencompetitive market.
2. The policy shall insure members of such association.
3. The premium for the policy shall be paid from funds contributed by theassociation, or from funds contributed by the covered persons, or both.
4. Except as provided in subdivision 5 of this subsection, a policy on whichno part of the premium is to be derived from funds contributed by the coveredpersons specifically for the insurance must insure all eligible personsexcept those who reject the coverage in writing.
5. An insurer may exclude or limit the coverage on any person as to whomevidence of individual insurability is not satisfactory to the insurer.
