Thischapter applies only to group life insurance and is known and may be cited asthe "Group Life Insurance Law".
26-17-102. Group contracts must meet group requirements;inapplicability of section; old contracts saved.
(a) No life insurance policy shall be delivered or issued fordelivery in this state insuring the lives of more than one (1) individualunless to one (1) of the groups specified in this chapter and unless incompliance with the provisions of this chapter.
(b) Subsection (a) of this section does not apply to lifeinsurance policies:
(i) Insuring only individuals:
(A) Related by blood, marriage, legal adoption or common ethnicheritage or ancestry;
(B) Having a common interest through ownership of a businessenterprise, or a substantial legal interest or equity therein, and who are activelyengaged in the management thereof; or
(C) Otherwise having an insurable interest in each other'slives.
(ii) Repealed by Laws 1990, ch. 3, 3.
(c) Subsections (a) and (b) of this section and W.S. 26-17-103through 26-17-109 do not apply to any group life insurance contract enteredinto or issued prior to January 1, 1968 or to any transfer of that contract to,or rewriting of that contract by, another insurer.
26-17-103. Employee groups.
(a) The lives of a group of individuals may be insured under apolicy issued to an employer or trustees of a fund established or adopted by anemployer, which employer or trustee is deemed the policyholder, insuring theemployer's employees for the benefit of persons other than the employer,subject to the following requirements:
(i) All employees or any class of employees are eligible forinsurance under the terms of the policy;
(ii) The policy may define "employees" to include:
(A) The employees of one (1) or more subsidiary corporations;
(B) The employees, individual proprietors and partners of one(1) or more affiliated corporations, proprietors or partnerships, if thebusiness of the employer and of the affiliated corporations, proprietors orpartnerships is under common control through stock ownership, contract orotherwise;
(C) The individual proprietor or partner, if the employer is anindividual proprietor or a partnership;
(D) Retired or former employees;
(E) Directors of a corporate employer.
(iii) Repealed by Laws 1990, ch. 3, 3.
(iv) Repealed by Laws 1990, ch. 3, 3.
(v) Any policy issued to insure the employees of a public bodymay define "employees" to include elected or appointed officials;
(vi) Policy premiums shall be paid by the policyholder subjectto the following requirements:
(A) Repealed by Laws 1990, ch. 3, 2,3.
(B) Repealed by Laws 1990, ch. 3, 3.
(C) Repealed by Laws 1990, ch. 3, 3.
(D) If the insured employee does not pay any part of thepremium for his insurance, the policy shall insure all eligible employees,except those who reject the coverage in writing and except as provided insubparagraph (E) of this paragraph;
(E) An insurer may exclude or limit the coverage on any personif evidence of individual insurability does not satisfy the insurer.
(vii) Repealed by Laws 1990, ch. 3, 3.
(viii) Repealed by Laws 1990, ch. 3, 3.
26-17-104. Debtor groups for benefit of creditor.
(a) The lives of a group of individuals may be insured under apolicy issued to a creditor, a creditor's parent holding company or a trusteeor agent designated by two (2) or more creditors, which creditor, holdingcompany, affiliate, trustee or agent is deemed the policyholder, to insuredebtors of the creditor concerning their indebtedness, subject to the followingrequirements:
(i) All debtors or any class of debtors of the creditor areeligible for insurance under the terms of the policy;
(ii) The policy may provide that the term "debtors"shall include:
(A) Borrowers of money or purchasers or lessees of goods,services or property for which payment is arranged through a credittransaction;
(B) The debtors of one (1) or more subsidiary corporations; and
(C) The debtors of one (1) or more affiliated corporations,proprietors or partnerships if the business of the policyholder and of theaffiliated corporations, proprietors or partnerships is under common control.
(iii) Repealed by Laws 1990, ch. 3, 3.
(iv) Policy premiums shall be paid by the policyholder, subjectto the following requirements:
(A) Repealed by Laws 1990, ch. 3, 3.
(B) Repealed by Laws 1990, ch. 3, 3.
(C) If the insured debtor does not pay any part of the premiumfor his insurance, the policy shall insure all eligible debtors, except those whoreject the coverage in writing and those who do not present evidence ofindividual insurability satisfactory to the insurer.
(v) Repealed by Laws 1990, ch. 3, 3.
(vi) The policy may exclude from the classes eligible forinsurance classes of debtors determined by age;
(vii) The total amount of insurance payable for an indebtednessshall not exceed the greater of the scheduled or actual amount of unpaidindebtedness to the creditor, except that insurance written concerning open-endcredit having a credit limit exceeding ten thousand dollars ($10,000.00) may bein an amount not exceeding the credit limit;
(viii) The insurance may be payable to the creditor or anysuccessor to the right, title and interest of the creditor. The payment shallreduce or extinguish the unpaid indebtedness of the debtor to the extent of thepayment and any excess of the insurance is payable to the insured or the estateof the insured;
(ix) Notwithstanding paragraphs (i) through (viii) of thissubsection, insurance on agricultural credit transaction commitments may bewritten up to the amount of the loan commitment on a nondecreasing or levelterm plan. Insurance on educational credit transaction commitments may bewritten up to the amount of the loan commitment less the amount of anyrepayments made on the loan.
26-17-105. Labor union groups.
(a) The lives of a group of individuals may be insured under apolicy issued to a labor union or similar employee organization which union ororganization is deemed the policyholder, to insure members of the union ororganization for the benefit of persons other than the union or organization orany of its officials, representatives or agents, subject to the followingrequirements:
(i) All members or any class of members of the union ororganization are eligible for insurance under the terms of the policy;
(ii) Policy premiums shall be paid by the policyholder, subjectto the following requirements:
(A) Repealed by Laws 1990, ch. 3, 3.
(B) Repealed by Laws 1990, ch. 3, 3.
(C) Repealed by Laws 1990, ch. 3, 3.
(D) If the insured member does not pay any part of the premiumfor his insurance, the policy shall insure all eligible members, except thosewho reject the coverage in writing and those who do not present evidence ofindividual insurability satisfactory to the insurer.
(iii) Repealed by Laws 1990, ch. 3, 3.
(iv) Repealed by Laws 1990, ch. 3, 3.
26-17-106. Trustee groups.
(a) The lives of a group of individuals may be insured under apolicy issued to a trust or the trustees of a fund established or adopted bytwo (2) or more employers, by one (1) or more labor unions or similar employeeorganizations, or by one (1) or more employers and one (1) or more labor unionsor similar employee organizations, which trust or trustees are deemed thepolicyholder, to insure employees of the employers or members of the unions ororganizations, for the benefit of persons other than the employers, unions ororganizations, subject to the following requirements:
(i) No policy shall be issued to insure employees of anyemployer whose eligibility to participate in the fund as an employer arises outof considerations directly related to the employer being a commercialcorrespondent or business client or patron of another employer, except if theother employer exercises substantial control over the business operations ofthe participating employers;
(ii) All employees of the employers, members of the unions ororganizations, or any classes of the employers, union members or organizationmembers are eligible for insurance under the terms of the policy;
(iii) The policy may define "employees" to include:
(A) Retired or former employees;
(B) The individual proprietor or partners, if an employer is anindividual proprietor or a partnership;
(C) The trustees, trustees' employees, or both, if their dutiesare principally connected with the trusteeship;
(D) Employees of one (1) or more subsidiary corporations andthe employees, individual proprietors and partners of one (1) or moreaffiliated corporations, proprietorships or partnerships if the business of theemployer and of the affiliated corporations, proprietorships or partnerships isunder common control;
(E) Directors of a corporate employer.
(iv) Repealed by Laws 1990, ch. 3, 3.
(v) Policy premiums shall be paid by the trustees subject tothe following requirements:
(A) Repealed by Laws 1990, ch. 3, 2,3.
(B) Repealed by Laws 1990, ch. 3, 3.
(C) If the covered person does not pay any part of the premiumfor his insurance, the policy shall insure all eligible persons, except thosewho reject the coverage in writing and those who do not present evidence ofindividual insurability satisfactory to the insurer.
(vi) Repealed by Laws 1990, ch. 3, 3.
(vii) Repealed by Laws 1990, ch. 3, 3.
26-17-107. Repealed by Laws 1990, ch. 3, 3.
26-17-108. Dependents' coverage.
(a) Insurance under any group life insurance policy issuedpursuant to W.S. 26-17-103, 26-17-105, 26-17-106, 26-17-109, 26-17-127 or26-17-128 may be extended to insure the employees or members or any class ofemployees or members against loss due to the death of their spouses anddependent children:
(i) Repealed by Laws 1990, ch. 3, 2,3.
(ii) If the employer or member does not pay any part of thepremium for the spouse's or dependent child's coverage, the policy shall insureall eligible employees or members with respect to their spouses and dependentchildren or any class of employees or members except that an insurer mayexclude or limit the coverage on any spouse or dependent child if evidence ofindividual insurability does not satisfy the insurer;
(iii) Repealed By Laws 2009, Ch. 93, 1.
(iv) Repealed by Laws 1990, ch. 3, 3.
(b) Repealed by Laws 1990, ch. 3, 3.
(c) Repealed by Laws 1990, ch. 3, 3.
(d) Repealed by Laws 1990, ch. 3, 3.
(e) Notwithstanding the provisions of W.S. 26-17-117, only one(1) certificate need be issued for each family unit if a statement concerningany dependent's coverage is included in the certificate.
26-17-109. Credit union group.
(a) The lives of a group of individuals may be insured under apolicy issued to a credit union or a trustee or agent designated by two (2) ormore credit unions, which credit union, trustee or agent is deemed thepolicyholder, to insure members of the credit union for the benefit of personsother than the credit union, trustee, agent or any of their officials, subjectto the following requirements:
(i) All members or all of any class of members of the creditunion are eligible for insurance under the terms of the policy;
(ii) Policy premiums shall be paid by the policyholder from thecredit union's funds and shall insure all eligible members except that aninsurer may exclude or limit the coverage on any member if evidence ofindividual insurability does not satisfy the insurer.
(A) Repealed by Laws 1990, ch. 3, 3.
(iv) Repealed by Laws 1990, ch. 3, 3.
(iii) Repealed by Laws 1990, ch. 3, 3.
(iv) Repealed by Laws 1990, ch. 3, 3.
26-17-110. Provisions required in group contracts; exceptions.
(a) No group life insurance policy shall be delivered in thisstate unless it contains provisions conforming in substance to the provisionsset forth in W.S. 26-17-110 through 26-17-121 and 26-17-130 or provisions whichin the commissioner's opinion are more favorable to the persons insured, or atleast as favorable to the persons insured and more favorable to thepolicyholder, except that:
(i) W.S. 26-17-116 through 26-17-120 and 26-17-130 do not applyto policies issued to a creditor to insure debtors of that creditor;
(ii) The standard provisions required for individual lifeinsurance policies do not apply to group life insurance policies; and
(iii) If the group life insurance policy is on a plan ofinsurance other than the term plan, it shall contain a nonforfeiture provisionwhich in the commissioner's opinion is equitable to the insured persons and tothe policyholder, but nothing in this subsection requires that group lifeinsurance policies contain the same nonforfeiture provisions as are requiredfor individual life insurance policies.
26-17-111. Grace period.
Thepolicyholder is entitled to a grace period of thirty-one (31) days for thepayment of any premium due except the first. The death benefit coveragecontinues in force during the grace period, unless the policyholder gives theinsurer written notice of discontinuance in advance of the date ofdiscontinuance and in accordance with the terms of the policy. The policy mayprovide that the policyholder is liable to the insurer for the payment of a prorata premium for the time the policy is in force during the grace period.
26-17-112. Incontestability.
Thevalidity of the policy shall not be contested, except for nonpayment ofpremium, after it is in force for two (2) years from its date of issue. Nostatement made by any person insured under the policy relating to hisinsurability shall be used in contesting the validity of the insurance withrespect to which the statement is made after the insurance is in force prior tothe contest for a period of two (2) years during the person's lifetime norunless it is contained in a written instrument he signs.
26-17-113. Application; statements are representations.
Acopy of the policyholder's application, if any, shall be attached to the policywhen issued and is a part of the contract. Any statements the policyholder orthe persons insured make are representations and not warranties, and nostatement any person insured makes shall be used in any contest unless a copyof the instrument containing the statement is or has been furnished to theperson or, in the event of death or incapacity of the insured person, to hisbeneficiary or personal representative.
26-17-114. Evidence of insurability.
Thepolicy shall set forth the conditions, if any, under which the insurer reservesthe right to require a person eligible for insurance to furnish evidence ofindividual insurability satisfactory to the insurer as a condition to part orall of his coverage.
26-17-115. Misstatement of age.
(a) The policy shall specify:
(i) That an equitable adjustment of premiums or of benefits orboth shall be made in case the age of a person insured is misstated; and
(ii) The method of adjustment to be used.
26-17-116. Payment of benefits.
(a) Any sum due by reason of the death of the person insured ispayable to the beneficiary designated by the person insured, except that if thepolicy refers to family status and does not specify family members by name, thebeneficiary may be the family member specified by status in the policy, subjectto:
(i) The provisions of the policy as to all or any part of thesum in case there is no designated beneficiary living at the time of theinsured's death; and
(ii) Any right the insurer reserved in the policy and set forthin the certificate to pay at its option a part of the sum not exceeding twothousand dollars ($2,000.00) to any person appearing to the insurer to beequitably entitled thereto by reason of having incurred funeral or otherexpenses incident to the last illness or death of the person insured.
(b) Payment of benefits shall be subject to the interestprovisions of W.S. 26-16-112 and time requirements of W.S. 26-15-124, providedthe interest provisions of W.S. 26-16-112 shall not apply to variable contractswhich provide for insurance or annuity benefits which may vary according to theinvestment experience of any separate account or accounts maintained by theinsurer as to such contract.
26-17-117. Certificate of policyholders.
Theinsurer shall issue to the policyholder for delivery to each person insured anindividual certificate with statements describing the insurance protection towhich he is entitled, to whom the insurance benefits are payable, anydependent's coverage included in the certificate, and the rights and conditionsset forth in W.S. 26-17-118 through 26-17-120 and 26-17-130.
26-17-118. Conversion on termination of eligibility.
(a) If the insurance, or any portion of it, on a person ordependent of a person covered under the policy ceases because of termination ofemployment or of membership in any of the classes eligible for coverage underthe policy, the insurer shall offer to issue to him, without evidence ofinsurability, an individual life insurance policy without disability or othersupplementary benefits, provided:
(i) Application for the policy shall be made, and the firstpremium paid to the insurer, within thirty-one (31) days after termination;
(ii) The policy, at the person's option, shall be on any one (1)of the forms customarily issued by the insurer at the age and for the amountapplied for, except that the group policy may exclude the option to elect terminsurance;
(iii) The policy shall be in an amount not exceeding the amountof life insurance which ceases because of the termination less the amount ofany life insurance for which the person is or becomes eligible under the sameor any group policy within thirty-one (31) days after the termination, providedthat any amount of insurance which matures on or before the date of suchtermination as an endowment payable to the person insured, whether in one (1)sum, in installments or in the form of an annuity, for the purposes of thisprovision, shall not be included in the amount which is considered to ceasebecause of the termination; and
(iv) The premium on the individual policy shall be at theinsurer's then customary rate applicable to the form and amount of theindividual policy, to the class of risk to which the person then belongs and tohis age attained on the effective date of the individual policy.
(b) Subject to the conditions set forth in subsection (a) ofthis section, the conversion privilege is available:
(i) To a surviving dependent, if any, at the death of theemployee or member concerning the coverage under the group policy whichterminates by reason of the death; and
(ii) To the dependent of the employee or member upon terminationof the dependent's coverage if the employee or member remains insured under thegroup policy and if the dependent ceases to be a qualified family member underthe group policy.
26-17-119. Conversion on termination of policy.
(a) If the group policy terminates or is amended to terminatethe insurance of any class of insured persons, any person insured thereunder atthe date of the termination whose insurance terminates, including the insureddependent of a covered person, which insured or insured dependent has been soinsured for at least three (3) years prior to the termination date is entitledto have issued to him by the insurer an individual life insurance policy,subject to the same conditions provided by W.S. 26-17-118, except that thegroup policy shall provide that the amount of the individual policy is theamount of the person's life insurance protection ceasing because of thetermination or amendment of the group policy, less the amount of any lifeinsurance for which he is or becomes eligible under any group policy issued orreinstated by the same or another insurer within thirty-one (31) days after thetermination.
(i) Deleted by Laws 1990, ch. 3, 2.
(ii) Repealed by Laws 1990, ch. 3, 2,3.
26-17-120. Death pending conversion.
Ifa person insured under the group policy, or the insured dependent of a coveredperson, dies during the period within which he would have been entitled to havean individual policy issued to him in accordance with W.S. 26-17-118 or26-17-119 and before the individual policy is effective, the amount of lifeinsurance which he would have been entitled to have issued under the individualpolicy is payable as a claim under the group policy, whether or not applicationfor the individual policy or the payment of the first premium has been made.
26-17-121. Information to debtor insured under creditor's policy.
Apolicy issued to a creditor to insure debtors of the creditor shall contain aprovision that the insurer shall furnish to the policyholder for delivery toeach debtor insured under the policy a form which shall contain a statementthat the life of the debtor is insured under the policy and that any deathbenefit paid thereunder by reason of his death shall first be applied to reduceor extinguish the indebtedness.
26-17-122. Notice as to conversion right.
Ifany individual insured under a group life insurance policy delivered in thisstate is entitled under the policy to have an individual life insurance policyissued to him without evidence of insurability, subject to making ofapplication and payment of the first premium within the period specified in thepolicy, and if the individual is not given notice of the existence of thatright at least fifteen (15) days prior to the expiration date of the period,the individual has an additional period within which to exercise the right, butnothing in this section continues any insurance beyond the period provided inthe policy. This additional period shall expire fifteen (15) days immediatelyafter the individual is given the notice, but no additional period shall extendbeyond sixty (60) days immediately after the expiration date of the periodprovided in the policy. Written notice presented to the individual or mailed bythe policyholder or the insurer to the individual's last known address asfurnished by the policyholder constitutes notice for the purpose of thissection.
26-17-123. Readjustment of premiums.
Anygroup life insurance contract may provide for a readjustment of the premiumrate based upon the experience thereunder.
26-17-124. Application of dividends; rate reductions.
Ifa policy dividend is declared or a rate reduction is made or continued for anyyear of insurance under any group life insurance policy issued to any policyholder,the excess, if any, of the aggregate dividends or rate reductions under thepolicy and all other group insurance policies of the policyholder over theaggregate expenditure for insurance under the policies made from fundscontributed by the policyholder, or by an employer of insured persons, or by aunion or association to which the insured persons belong, includingexpenditures made in connection with administration of the policies, shall beapplied by the policyholder for the sole benefit of insured employees ormembers.
26-17-125. "Wholesale life insurance" defined.
(a) "Wholesale life insurance" means a plan of lifeinsurance, other than salary savings life insurance or pension trust insuranceand annuities, under which individual policies are issued:
(i) To the employees of any employer; and
(ii) On the lives of not less than four (4) employees at date ofissue.
(b) Premiums for the policies shall be paid either wholly fromthe employer's funds, or funds the employer contributes, or partly from thosefunds and partly from funds the insured employees contribute.
26-17-126. Assignment of incidents of ownership under group lifeinsurance policy.
(a) Subject to the terms of the policy, or pursuant to anagreement among the insured, the group policyholder and the insurer, any personinsured under a group life insurance policy may assign to any person, otherthan the policyholder, any ownership or part thereof conferred on him by thepolicy or by the law, including specifically, but not limited to, the right toexercise the conversion privilege and the right to name a beneficiary.
(b) Any assignment by the insured is valid for the purpose ofvesting in the assignee, in accordance with any provisions included therein asto the time at which it is effective, any ownership, rights, title and interestso assigned, but without prejudice to the insurer because of any payment it maymake or individual policy it may issue prior to the receipt of notice of theassignment.
26-17-127. Additional groups.
(a) Group life insurance offered to a resident under a grouplife insurance policy issued to a group other than one described in W.S.26-17-103 through 26-17-106 and 26-17-109 is subject to the followingrequirements:
(i) A group life insurance policy shall not be delivered inthis state unless the commissioner finds that:
(A) The issuance of the group policy is not contrary to thebest interest of the public;
(B) The issuance of the group policy would result in economiesof acquisition or administration;
(C) The benefits are reasonable in relation to the premiumscharged;
(D) The insurer possesses and maintains capital and surplusrequirements provided by W.S. 26-3-108.
(ii) Group life insurance coverage shall not be offered in thisstate by an insurer under a policy issued in another state unless thecommissioner determines the requirements of paragraph (i) of this subsectionare met and the insurer files with the commissioner:
(A) A copy of the group master contract;
(B) A copy of the statute of the state where the group policyis issued that authorizes the issuance of the group policy;
(C) Evidence of approval of the group policy in the state wherethe group policy is issued; and
(D) Copies of all supportive material used by the insurer tosecure approval of the group in the state where the group policy is issued.
(iii) If the commissioner fails to make the determinationprovided by paragraph (ii) of this subsection within forty-five (45) days offiling by the insurer of the documents required by paragraph (ii) of thissubsection, the requirements of paragraph (i) of this subsection are deemed tobe met;
(iv) An insurer may exclude or limit the coverage on any personif evidence of individual insurability does not satisfy the insurer.
26-17-128. Insurance for associations.
(a) The lives of a group of individuals may be insured under apolicy issued to an association or a trust or the trustee of a fund establishedor adopted for the benefit of members of one (1) or more associations. Theassociation shall have at the time the policy is first issued a minimum offifty (50) persons eligible for insurance, shall have been organized andmaintained in good faith for purposes other than that of obtaining insurance,shall have been in active existence for at least one (1) year and shall have aconstitution and bylaws which provide that:
(i) The association holds regular meetings not less thanannually to further the members' purposes;
(ii) Except for credit unions, the association collects dues orsolicits contributions from members; and
(iii) The members have voting privileges and representation onthe governing board and committees.
(b) The policy allowed by subsection (a) of this section issubject to the following requirements:
(i) The policy may insure one (1) or more of the following orall of any class of the following for the benefit of persons other than theemployee's employer:
(A) Members of the association;
(B) Employees of the association; or
(C) Employees of members.
(ii) If the covered person does not pay any part of the premiumfor his insurance, the policy shall insure all eligible persons, except thosewho reject the coverage in writing and except as provided in paragraph (iii) ofthis subsection; and
(iii) An insurer may exclude or limit the coverage on any personif evidence of individual insurability does not satisfy the insurer.
26-17-129. Notice of compensation.
(a) The insurer shall distribute to prospective insureds awritten notice that compensation shall or may be paid for a program ofinsurance which if issued on a group basis would qualify under W.S. 26-17-127or 26-17-128, if compensation of any kind shall or may be paid to:
(i) A policyholder or sponsoring or endorsing entity in thecase of a group policy; or
(ii) A sponsoring or endorsing entity in the case of individual,blanket or franchise policies marketed by means of direct responsesolicitation.
(b) Notice required by this section shall be distributed:
(i) Whether compensation is direct or indirect; and
(ii) Whether compensation is:
(A) Paid to or retained by the policyholder or sponsoring orendorsing entity; or
(B) Paid to or retained by a third party at the direction of thepolicyholder, sponsoring or endorsing entity or any entity affiliated by way ofownership, contract or employment.
(c) The notice required by this section shall be placed on oraccompany any application or enrollment form provided to prospective insureds.
(d) As used in this section:
(i) "Direct response solicitation" means asolicitation through a sponsoring or endorsing entity by the mails, telephoneor other mass communications media; and
(ii) "Sponsoring or endorsing entity" means an organizationwhich has arranged for the offering of a program of insurance in a manner whichcommunicates that eligibility for participation in the program is dependentupon affiliation with the organization or that it encourages participation inthe program.
26-17-130. Continuation during disability.
(a) Where active employment is a condition of insurance, thegroup policy shall contain a provision that an insured may continue coverageduring the insured's total disability as provided in this subsection by timelypayment to the policyholder of that portion, if any, of the premium that wouldhave been required from the insured had total disability not occurred. Thecontinuation shall be on a premium paying basis for a period not beyond theearlier of:
(i) Six (6) months from the date on which the total disabilitystarted;
(ii) Approval by the insurer of continuation of the coverageunder any disability provision contained in the group insurance policy; or
(iii) The discontinuance of the group insurance policy.
Thischapter applies only to group life insurance and is known and may be cited asthe "Group Life Insurance Law".
26-17-102. Group contracts must meet group requirements;inapplicability of section; old contracts saved.
(a) No life insurance policy shall be delivered or issued fordelivery in this state insuring the lives of more than one (1) individualunless to one (1) of the groups specified in this chapter and unless incompliance with the provisions of this chapter.
(b) Subsection (a) of this section does not apply to lifeinsurance policies:
(i) Insuring only individuals:
(A) Related by blood, marriage, legal adoption or common ethnicheritage or ancestry;
(B) Having a common interest through ownership of a businessenterprise, or a substantial legal interest or equity therein, and who are activelyengaged in the management thereof; or
(C) Otherwise having an insurable interest in each other'slives.
(ii) Repealed by Laws 1990, ch. 3, 3.
(c) Subsections (a) and (b) of this section and W.S. 26-17-103through 26-17-109 do not apply to any group life insurance contract enteredinto or issued prior to January 1, 1968 or to any transfer of that contract to,or rewriting of that contract by, another insurer.
26-17-103. Employee groups.
(a) The lives of a group of individuals may be insured under apolicy issued to an employer or trustees of a fund established or adopted by anemployer, which employer or trustee is deemed the policyholder, insuring theemployer's employees for the benefit of persons other than the employer,subject to the following requirements:
(i) All employees or any class of employees are eligible forinsurance under the terms of the policy;
(ii) The policy may define "employees" to include:
(A) The employees of one (1) or more subsidiary corporations;
(B) The employees, individual proprietors and partners of one(1) or more affiliated corporations, proprietors or partnerships, if thebusiness of the employer and of the affiliated corporations, proprietors orpartnerships is under common control through stock ownership, contract orotherwise;
(C) The individual proprietor or partner, if the employer is anindividual proprietor or a partnership;
(D) Retired or former employees;
(E) Directors of a corporate employer.
(iii) Repealed by Laws 1990, ch. 3, 3.
(iv) Repealed by Laws 1990, ch. 3, 3.
(v) Any policy issued to insure the employees of a public bodymay define "employees" to include elected or appointed officials;
(vi) Policy premiums shall be paid by the policyholder subjectto the following requirements:
(A) Repealed by Laws 1990, ch. 3, 2,3.
(B) Repealed by Laws 1990, ch. 3, 3.
(C) Repealed by Laws 1990, ch. 3, 3.
(D) If the insured employee does not pay any part of thepremium for his insurance, the policy shall insure all eligible employees,except those who reject the coverage in writing and except as provided insubparagraph (E) of this paragraph;
(E) An insurer may exclude or limit the coverage on any personif evidence of individual insurability does not satisfy the insurer.
(vii) Repealed by Laws 1990, ch. 3, 3.
(viii) Repealed by Laws 1990, ch. 3, 3.
26-17-104. Debtor groups for benefit of creditor.
(a) The lives of a group of individuals may be insured under apolicy issued to a creditor, a creditor's parent holding company or a trusteeor agent designated by two (2) or more creditors, which creditor, holdingcompany, affiliate, trustee or agent is deemed the policyholder, to insuredebtors of the creditor concerning their indebtedness, subject to the followingrequirements:
(i) All debtors or any class of debtors of the creditor areeligible for insurance under the terms of the policy;
(ii) The policy may provide that the term "debtors"shall include:
(A) Borrowers of money or purchasers or lessees of goods,services or property for which payment is arranged through a credittransaction;
(B) The debtors of one (1) or more subsidiary corporations; and
(C) The debtors of one (1) or more affiliated corporations,proprietors or partnerships if the business of the policyholder and of theaffiliated corporations, proprietors or partnerships is under common control.
(iii) Repealed by Laws 1990, ch. 3, 3.
(iv) Policy premiums shall be paid by the policyholder, subjectto the following requirements:
(A) Repealed by Laws 1990, ch. 3, 3.
(B) Repealed by Laws 1990, ch. 3, 3.
(C) If the insured debtor does not pay any part of the premiumfor his insurance, the policy shall insure all eligible debtors, except those whoreject the coverage in writing and those who do not present evidence ofindividual insurability satisfactory to the insurer.
(v) Repealed by Laws 1990, ch. 3, 3.
(vi) The policy may exclude from the classes eligible forinsurance classes of debtors determined by age;
(vii) The total amount of insurance payable for an indebtednessshall not exceed the greater of the scheduled or actual amount of unpaidindebtedness to the creditor, except that insurance written concerning open-endcredit having a credit limit exceeding ten thousand dollars ($10,000.00) may bein an amount not exceeding the credit limit;
(viii) The insurance may be payable to the creditor or anysuccessor to the right, title and interest of the creditor. The payment shallreduce or extinguish the unpaid indebtedness of the debtor to the extent of thepayment and any excess of the insurance is payable to the insured or the estateof the insured;
(ix) Notwithstanding paragraphs (i) through (viii) of thissubsection, insurance on agricultural credit transaction commitments may bewritten up to the amount of the loan commitment on a nondecreasing or levelterm plan. Insurance on educational credit transaction commitments may bewritten up to the amount of the loan commitment less the amount of anyrepayments made on the loan.
26-17-105. Labor union groups.
(a) The lives of a group of individuals may be insured under apolicy issued to a labor union or similar employee organization which union ororganization is deemed the policyholder, to insure members of the union ororganization for the benefit of persons other than the union or organization orany of its officials, representatives or agents, subject to the followingrequirements:
(i) All members or any class of members of the union ororganization are eligible for insurance under the terms of the policy;
(ii) Policy premiums shall be paid by the policyholder, subjectto the following requirements:
(A) Repealed by Laws 1990, ch. 3, 3.
(B) Repealed by Laws 1990, ch. 3, 3.
(C) Repealed by Laws 1990, ch. 3, 3.
(D) If the insured member does not pay any part of the premiumfor his insurance, the policy shall insure all eligible members, except thosewho reject the coverage in writing and those who do not present evidence ofindividual insurability satisfactory to the insurer.
(iii) Repealed by Laws 1990, ch. 3, 3.
(iv) Repealed by Laws 1990, ch. 3, 3.
26-17-106. Trustee groups.
(a) The lives of a group of individuals may be insured under apolicy issued to a trust or the trustees of a fund established or adopted bytwo (2) or more employers, by one (1) or more labor unions or similar employeeorganizations, or by one (1) or more employers and one (1) or more labor unionsor similar employee organizations, which trust or trustees are deemed thepolicyholder, to insure employees of the employers or members of the unions ororganizations, for the benefit of persons other than the employers, unions ororganizations, subject to the following requirements:
(i) No policy shall be issued to insure employees of anyemployer whose eligibility to participate in the fund as an employer arises outof considerations directly related to the employer being a commercialcorrespondent or business client or patron of another employer, except if theother employer exercises substantial control over the business operations ofthe participating employers;
(ii) All employees of the employers, members of the unions ororganizations, or any classes of the employers, union members or organizationmembers are eligible for insurance under the terms of the policy;
(iii) The policy may define "employees" to include:
(A) Retired or former employees;
(B) The individual proprietor or partners, if an employer is anindividual proprietor or a partnership;
(C) The trustees, trustees' employees, or both, if their dutiesare principally connected with the trusteeship;
(D) Employees of one (1) or more subsidiary corporations andthe employees, individual proprietors and partners of one (1) or moreaffiliated corporations, proprietorships or partnerships if the business of theemployer and of the affiliated corporations, proprietorships or partnerships isunder common control;
(E) Directors of a corporate employer.
(iv) Repealed by Laws 1990, ch. 3, 3.
(v) Policy premiums shall be paid by the trustees subject tothe following requirements:
(A) Repealed by Laws 1990, ch. 3, 2,3.
(B) Repealed by Laws 1990, ch. 3, 3.
(C) If the covered person does not pay any part of the premiumfor his insurance, the policy shall insure all eligible persons, except thosewho reject the coverage in writing and those who do not present evidence ofindividual insurability satisfactory to the insurer.
(vi) Repealed by Laws 1990, ch. 3, 3.
(vii) Repealed by Laws 1990, ch. 3, 3.
26-17-107. Repealed by Laws 1990, ch. 3, 3.
26-17-108. Dependents' coverage.
(a) Insurance under any group life insurance policy issuedpursuant to W.S. 26-17-103, 26-17-105, 26-17-106, 26-17-109, 26-17-127 or26-17-128 may be extended to insure the employees or members or any class ofemployees or members against loss due to the death of their spouses anddependent children:
(i) Repealed by Laws 1990, ch. 3, 2,3.
(ii) If the employer or member does not pay any part of thepremium for the spouse's or dependent child's coverage, the policy shall insureall eligible employees or members with respect to their spouses and dependentchildren or any class of employees or members except that an insurer mayexclude or limit the coverage on any spouse or dependent child if evidence ofindividual insurability does not satisfy the insurer;
(iii) Repealed By Laws 2009, Ch. 93, 1.
(iv) Repealed by Laws 1990, ch. 3, 3.
(b) Repealed by Laws 1990, ch. 3, 3.
(c) Repealed by Laws 1990, ch. 3, 3.
(d) Repealed by Laws 1990, ch. 3, 3.
(e) Notwithstanding the provisions of W.S. 26-17-117, only one(1) certificate need be issued for each family unit if a statement concerningany dependent's coverage is included in the certificate.
26-17-109. Credit union group.
(a) The lives of a group of individuals may be insured under apolicy issued to a credit union or a trustee or agent designated by two (2) ormore credit unions, which credit union, trustee or agent is deemed thepolicyholder, to insure members of the credit union for the benefit of personsother than the credit union, trustee, agent or any of their officials, subjectto the following requirements:
(i) All members or all of any class of members of the creditunion are eligible for insurance under the terms of the policy;
(ii) Policy premiums shall be paid by the policyholder from thecredit union's funds and shall insure all eligible members except that aninsurer may exclude or limit the coverage on any member if evidence ofindividual insurability does not satisfy the insurer.
(A) Repealed by Laws 1990, ch. 3, 3.
(iv) Repealed by Laws 1990, ch. 3, 3.
(iii) Repealed by Laws 1990, ch. 3, 3.
(iv) Repealed by Laws 1990, ch. 3, 3.
26-17-110. Provisions required in group contracts; exceptions.
(a) No group life insurance policy shall be delivered in thisstate unless it contains provisions conforming in substance to the provisionsset forth in W.S. 26-17-110 through 26-17-121 and 26-17-130 or provisions whichin the commissioner's opinion are more favorable to the persons insured, or atleast as favorable to the persons insured and more favorable to thepolicyholder, except that:
(i) W.S. 26-17-116 through 26-17-120 and 26-17-130 do not applyto policies issued to a creditor to insure debtors of that creditor;
(ii) The standard provisions required for individual lifeinsurance policies do not apply to group life insurance policies; and
(iii) If the group life insurance policy is on a plan ofinsurance other than the term plan, it shall contain a nonforfeiture provisionwhich in the commissioner's opinion is equitable to the insured persons and tothe policyholder, but nothing in this subsection requires that group lifeinsurance policies contain the same nonforfeiture provisions as are requiredfor individual life insurance policies.
26-17-111. Grace period.
Thepolicyholder is entitled to a grace period of thirty-one (31) days for thepayment of any premium due except the first. The death benefit coveragecontinues in force during the grace period, unless the policyholder gives theinsurer written notice of discontinuance in advance of the date ofdiscontinuance and in accordance with the terms of the policy. The policy mayprovide that the policyholder is liable to the insurer for the payment of a prorata premium for the time the policy is in force during the grace period.
26-17-112. Incontestability.
Thevalidity of the policy shall not be contested, except for nonpayment ofpremium, after it is in force for two (2) years from its date of issue. Nostatement made by any person insured under the policy relating to hisinsurability shall be used in contesting the validity of the insurance withrespect to which the statement is made after the insurance is in force prior tothe contest for a period of two (2) years during the person's lifetime norunless it is contained in a written instrument he signs.
26-17-113. Application; statements are representations.
Acopy of the policyholder's application, if any, shall be attached to the policywhen issued and is a part of the contract. Any statements the policyholder orthe persons insured make are representations and not warranties, and nostatement any person insured makes shall be used in any contest unless a copyof the instrument containing the statement is or has been furnished to theperson or, in the event of death or incapacity of the insured person, to hisbeneficiary or personal representative.
26-17-114. Evidence of insurability.
Thepolicy shall set forth the conditions, if any, under which the insurer reservesthe right to require a person eligible for insurance to furnish evidence ofindividual insurability satisfactory to the insurer as a condition to part orall of his coverage.
26-17-115. Misstatement of age.
(a) The policy shall specify:
(i) That an equitable adjustment of premiums or of benefits orboth shall be made in case the age of a person insured is misstated; and
(ii) The method of adjustment to be used.
26-17-116. Payment of benefits.
(a) Any sum due by reason of the death of the person insured ispayable to the beneficiary designated by the person insured, except that if thepolicy refers to family status and does not specify family members by name, thebeneficiary may be the family member specified by status in the policy, subjectto:
(i) The provisions of the policy as to all or any part of thesum in case there is no designated beneficiary living at the time of theinsured's death; and
(ii) Any right the insurer reserved in the policy and set forthin the certificate to pay at its option a part of the sum not exceeding twothousand dollars ($2,000.00) to any person appearing to the insurer to beequitably entitled thereto by reason of having incurred funeral or otherexpenses incident to the last illness or death of the person insured.
(b) Payment of benefits shall be subject to the interestprovisions of W.S. 26-16-112 and time requirements of W.S. 26-15-124, providedthe interest provisions of W.S. 26-16-112 shall not apply to variable contractswhich provide for insurance or annuity benefits which may vary according to theinvestment experience of any separate account or accounts maintained by theinsurer as to such contract.
26-17-117. Certificate of policyholders.
Theinsurer shall issue to the policyholder for delivery to each person insured anindividual certificate with statements describing the insurance protection towhich he is entitled, to whom the insurance benefits are payable, anydependent's coverage included in the certificate, and the rights and conditionsset forth in W.S. 26-17-118 through 26-17-120 and 26-17-130.
26-17-118. Conversion on termination of eligibility.
(a) If the insurance, or any portion of it, on a person ordependent of a person covered under the policy ceases because of termination ofemployment or of membership in any of the classes eligible for coverage underthe policy, the insurer shall offer to issue to him, without evidence ofinsurability, an individual life insurance policy without disability or othersupplementary benefits, provided:
(i) Application for the policy shall be made, and the firstpremium paid to the insurer, within thirty-one (31) days after termination;
(ii) The policy, at the person's option, shall be on any one (1)of the forms customarily issued by the insurer at the age and for the amountapplied for, except that the group policy may exclude the option to elect terminsurance;
(iii) The policy shall be in an amount not exceeding the amountof life insurance which ceases because of the termination less the amount ofany life insurance for which the person is or becomes eligible under the sameor any group policy within thirty-one (31) days after the termination, providedthat any amount of insurance which matures on or before the date of suchtermination as an endowment payable to the person insured, whether in one (1)sum, in installments or in the form of an annuity, for the purposes of thisprovision, shall not be included in the amount which is considered to ceasebecause of the termination; and
(iv) The premium on the individual policy shall be at theinsurer's then customary rate applicable to the form and amount of theindividual policy, to the class of risk to which the person then belongs and tohis age attained on the effective date of the individual policy.
(b) Subject to the conditions set forth in subsection (a) ofthis section, the conversion privilege is available:
(i) To a surviving dependent, if any, at the death of theemployee or member concerning the coverage under the group policy whichterminates by reason of the death; and
(ii) To the dependent of the employee or member upon terminationof the dependent's coverage if the employee or member remains insured under thegroup policy and if the dependent ceases to be a qualified family member underthe group policy.
26-17-119. Conversion on termination of policy.
(a) If the group policy terminates or is amended to terminatethe insurance of any class of insured persons, any person insured thereunder atthe date of the termination whose insurance terminates, including the insureddependent of a covered person, which insured or insured dependent has been soinsured for at least three (3) years prior to the termination date is entitledto have issued to him by the insurer an individual life insurance policy,subject to the same conditions provided by W.S. 26-17-118, except that thegroup policy shall provide that the amount of the individual policy is theamount of the person's life insurance protection ceasing because of thetermination or amendment of the group policy, less the amount of any lifeinsurance for which he is or becomes eligible under any group policy issued orreinstated by the same or another insurer within thirty-one (31) days after thetermination.
(i) Deleted by Laws 1990, ch. 3, 2.
(ii) Repealed by Laws 1990, ch. 3, 2,3.
26-17-120. Death pending conversion.
Ifa person insured under the group policy, or the insured dependent of a coveredperson, dies during the period within which he would have been entitled to havean individual policy issued to him in accordance with W.S. 26-17-118 or26-17-119 and before the individual policy is effective, the amount of lifeinsurance which he would have been entitled to have issued under the individualpolicy is payable as a claim under the group policy, whether or not applicationfor the individual policy or the payment of the first premium has been made.
26-17-121. Information to debtor insured under creditor's policy.
Apolicy issued to a creditor to insure debtors of the creditor shall contain aprovision that the insurer shall furnish to the policyholder for delivery toeach debtor insured under the policy a form which shall contain a statementthat the life of the debtor is insured under the policy and that any deathbenefit paid thereunder by reason of his death shall first be applied to reduceor extinguish the indebtedness.
26-17-122. Notice as to conversion right.
Ifany individual insured under a group life insurance policy delivered in thisstate is entitled under the policy to have an individual life insurance policyissued to him without evidence of insurability, subject to making ofapplication and payment of the first premium within the period specified in thepolicy, and if the individual is not given notice of the existence of thatright at least fifteen (15) days prior to the expiration date of the period,the individual has an additional period within which to exercise the right, butnothing in this section continues any insurance beyond the period provided inthe policy. This additional period shall expire fifteen (15) days immediatelyafter the individual is given the notice, but no additional period shall extendbeyond sixty (60) days immediately after the expiration date of the periodprovided in the policy. Written notice presented to the individual or mailed bythe policyholder or the insurer to the individual's last known address asfurnished by the policyholder constitutes notice for the purpose of thissection.
26-17-123. Readjustment of premiums.
Anygroup life insurance contract may provide for a readjustment of the premiumrate based upon the experience thereunder.
26-17-124. Application of dividends; rate reductions.
Ifa policy dividend is declared or a rate reduction is made or continued for anyyear of insurance under any group life insurance policy issued to any policyholder,the excess, if any, of the aggregate dividends or rate reductions under thepolicy and all other group insurance policies of the policyholder over theaggregate expenditure for insurance under the policies made from fundscontributed by the policyholder, or by an employer of insured persons, or by aunion or association to which the insured persons belong, includingexpenditures made in connection with administration of the policies, shall beapplied by the policyholder for the sole benefit of insured employees ormembers.
26-17-125. "Wholesale life insurance" defined.
(a) "Wholesale life insurance" means a plan of lifeinsurance, other than salary savings life insurance or pension trust insuranceand annuities, under which individual policies are issued:
(i) To the employees of any employer; and
(ii) On the lives of not less than four (4) employees at date ofissue.
(b) Premiums for the policies shall be paid either wholly fromthe employer's funds, or funds the employer contributes, or partly from thosefunds and partly from funds the insured employees contribute.
26-17-126. Assignment of incidents of ownership under group lifeinsurance policy.
(a) Subject to the terms of the policy, or pursuant to anagreement among the insured, the group policyholder and the insurer, any personinsured under a group life insurance policy may assign to any person, otherthan the policyholder, any ownership or part thereof conferred on him by thepolicy or by the law, including specifically, but not limited to, the right toexercise the conversion privilege and the right to name a beneficiary.
(b) Any assignment by the insured is valid for the purpose ofvesting in the assignee, in accordance with any provisions included therein asto the time at which it is effective, any ownership, rights, title and interestso assigned, but without prejudice to the insurer because of any payment it maymake or individual policy it may issue prior to the receipt of notice of theassignment.
26-17-127. Additional groups.
(a) Group life insurance offered to a resident under a grouplife insurance policy issued to a group other than one described in W.S.26-17-103 through 26-17-106 and 26-17-109 is subject to the followingrequirements:
(i) A group life insurance policy shall not be delivered inthis state unless the commissioner finds that:
(A) The issuance of the group policy is not contrary to thebest interest of the public;
(B) The issuance of the group policy would result in economiesof acquisition or administration;
(C) The benefits are reasonable in relation to the premiumscharged;
(D) The insurer possesses and maintains capital and surplusrequirements provided by W.S. 26-3-108.
(ii) Group life insurance coverage shall not be offered in thisstate by an insurer under a policy issued in another state unless thecommissioner determines the requirements of paragraph (i) of this subsectionare met and the insurer files with the commissioner:
(A) A copy of the group master contract;
(B) A copy of the statute of the state where the group policyis issued that authorizes the issuance of the group policy;
(C) Evidence of approval of the group policy in the state wherethe group policy is issued; and
(D) Copies of all supportive material used by the insurer tosecure approval of the group in the state where the group policy is issued.
(iii) If the commissioner fails to make the determinationprovided by paragraph (ii) of this subsection within forty-five (45) days offiling by the insurer of the documents required by paragraph (ii) of thissubsection, the requirements of paragraph (i) of this subsection are deemed tobe met;
(iv) An insurer may exclude or limit the coverage on any personif evidence of individual insurability does not satisfy the insurer.
26-17-128. Insurance for associations.
(a) The lives of a group of individuals may be insured under apolicy issued to an association or a trust or the trustee of a fund establishedor adopted for the benefit of members of one (1) or more associations. Theassociation shall have at the time the policy is first issued a minimum offifty (50) persons eligible for insurance, shall have been organized andmaintained in good faith for purposes other than that of obtaining insurance,shall have been in active existence for at least one (1) year and shall have aconstitution and bylaws which provide that:
(i) The association holds regular meetings not less thanannually to further the members' purposes;
(ii) Except for credit unions, the association collects dues orsolicits contributions from members; and
(iii) The members have voting privileges and representation onthe governing board and committees.
(b) The policy allowed by subsection (a) of this section issubject to the following requirements:
(i) The policy may insure one (1) or more of the following orall of any class of the following for the benefit of persons other than theemployee's employer:
(A) Members of the association;
(B) Employees of the association; or
(C) Employees of members.
(ii) If the covered person does not pay any part of the premiumfor his insurance, the policy shall insure all eligible persons, except thosewho reject the coverage in writing and except as provided in paragraph (iii) ofthis subsection; and
(iii) An insurer may exclude or limit the coverage on any personif evidence of individual insurability does not satisfy the insurer.
26-17-129. Notice of compensation.
(a) The insurer shall distribute to prospective insureds awritten notice that compensation shall or may be paid for a program ofinsurance which if issued on a group basis would qualify under W.S. 26-17-127or 26-17-128, if compensation of any kind shall or may be paid to:
(i) A policyholder or sponsoring or endorsing entity in thecase of a group policy; or
(ii) A sponsoring or endorsing entity in the case of individual,blanket or franchise policies marketed by means of direct responsesolicitation.
(b) Notice required by this section shall be distributed:
(i) Whether compensation is direct or indirect; and
(ii) Whether compensation is:
(A) Paid to or retained by the policyholder or sponsoring orendorsing entity; or
(B) Paid to or retained by a third party at the direction of thepolicyholder, sponsoring or endorsing entity or any entity affiliated by way ofownership, contract or employment.
(c) The notice required by this section shall be placed on oraccompany any application or enrollment form provided to prospective insureds.
(d) As used in this section:
(i) "Direct response solicitation" means asolicitation through a sponsoring or endorsing entity by the mails, telephoneor other mass communications media; and
(ii) "Sponsoring or endorsing entity" means an organizationwhich has arranged for the offering of a program of insurance in a manner whichcommunicates that eligibility for participation in the program is dependentupon affiliation with the organization or that it encourages participation inthe program.
26-17-130. Continuation during disability.
(a) Where active employment is a condition of insurance, thegroup policy shall contain a provision that an insured may continue coverageduring the insured's total disability as provided in this subsection by timelypayment to the policyholder of that portion, if any, of the premium that wouldhave been required from the insured had total disability not occurred. Thecontinuation shall be on a premium paying basis for a period not beyond theearlier of:
(i) Six (6) months from the date on which the total disabilitystarted;
(ii) Approval by the insurer of continuation of the coverageunder any disability provision contained in the group insurance policy; or
(iii) The discontinuance of the group insurance policy.
Thischapter applies only to group life insurance and is known and may be cited asthe "Group Life Insurance Law".
26-17-102. Group contracts must meet group requirements;inapplicability of section; old contracts saved.
(a) No life insurance policy shall be delivered or issued fordelivery in this state insuring the lives of more than one (1) individualunless to one (1) of the groups specified in this chapter and unless incompliance with the provisions of this chapter.
(b) Subsection (a) of this section does not apply to lifeinsurance policies:
(i) Insuring only individuals:
(A) Related by blood, marriage, legal adoption or common ethnicheritage or ancestry;
(B) Having a common interest through ownership of a businessenterprise, or a substantial legal interest or equity therein, and who are activelyengaged in the management thereof; or
(C) Otherwise having an insurable interest in each other'slives.
(ii) Repealed by Laws 1990, ch. 3, 3.
(c) Subsections (a) and (b) of this section and W.S. 26-17-103through 26-17-109 do not apply to any group life insurance contract enteredinto or issued prior to January 1, 1968 or to any transfer of that contract to,or rewriting of that contract by, another insurer.
26-17-103. Employee groups.
(a) The lives of a group of individuals may be insured under apolicy issued to an employer or trustees of a fund established or adopted by anemployer, which employer or trustee is deemed the policyholder, insuring theemployer's employees for the benefit of persons other than the employer,subject to the following requirements:
(i) All employees or any class of employees are eligible forinsurance under the terms of the policy;
(ii) The policy may define "employees" to include:
(A) The employees of one (1) or more subsidiary corporations;
(B) The employees, individual proprietors and partners of one(1) or more affiliated corporations, proprietors or partnerships, if thebusiness of the employer and of the affiliated corporations, proprietors orpartnerships is under common control through stock ownership, contract orotherwise;
(C) The individual proprietor or partner, if the employer is anindividual proprietor or a partnership;
(D) Retired or former employees;
(E) Directors of a corporate employer.
(iii) Repealed by Laws 1990, ch. 3, 3.
(iv) Repealed by Laws 1990, ch. 3, 3.
(v) Any policy issued to insure the employees of a public bodymay define "employees" to include elected or appointed officials;
(vi) Policy premiums shall be paid by the policyholder subjectto the following requirements:
(A) Repealed by Laws 1990, ch. 3, 2,3.
(B) Repealed by Laws 1990, ch. 3, 3.
(C) Repealed by Laws 1990, ch. 3, 3.
(D) If the insured employee does not pay any part of thepremium for his insurance, the policy shall insure all eligible employees,except those who reject the coverage in writing and except as provided insubparagraph (E) of this paragraph;
(E) An insurer may exclude or limit the coverage on any personif evidence of individual insurability does not satisfy the insurer.
(vii) Repealed by Laws 1990, ch. 3, 3.
(viii) Repealed by Laws 1990, ch. 3, 3.
26-17-104. Debtor groups for benefit of creditor.
(a) The lives of a group of individuals may be insured under apolicy issued to a creditor, a creditor's parent holding company or a trusteeor agent designated by two (2) or more creditors, which creditor, holdingcompany, affiliate, trustee or agent is deemed the policyholder, to insuredebtors of the creditor concerning their indebtedness, subject to the followingrequirements:
(i) All debtors or any class of debtors of the creditor areeligible for insurance under the terms of the policy;
(ii) The policy may provide that the term "debtors"shall include:
(A) Borrowers of money or purchasers or lessees of goods,services or property for which payment is arranged through a credittransaction;
(B) The debtors of one (1) or more subsidiary corporations; and
(C) The debtors of one (1) or more affiliated corporations,proprietors or partnerships if the business of the policyholder and of theaffiliated corporations, proprietors or partnerships is under common control.
(iii) Repealed by Laws 1990, ch. 3, 3.
(iv) Policy premiums shall be paid by the policyholder, subjectto the following requirements:
(A) Repealed by Laws 1990, ch. 3, 3.
(B) Repealed by Laws 1990, ch. 3, 3.
(C) If the insured debtor does not pay any part of the premiumfor his insurance, the policy shall insure all eligible debtors, except those whoreject the coverage in writing and those who do not present evidence ofindividual insurability satisfactory to the insurer.
(v) Repealed by Laws 1990, ch. 3, 3.
(vi) The policy may exclude from the classes eligible forinsurance classes of debtors determined by age;
(vii) The total amount of insurance payable for an indebtednessshall not exceed the greater of the scheduled or actual amount of unpaidindebtedness to the creditor, except that insurance written concerning open-endcredit having a credit limit exceeding ten thousand dollars ($10,000.00) may bein an amount not exceeding the credit limit;
(viii) The insurance may be payable to the creditor or anysuccessor to the right, title and interest of the creditor. The payment shallreduce or extinguish the unpaid indebtedness of the debtor to the extent of thepayment and any excess of the insurance is payable to the insured or the estateof the insured;
(ix) Notwithstanding paragraphs (i) through (viii) of thissubsection, insurance on agricultural credit transaction commitments may bewritten up to the amount of the loan commitment on a nondecreasing or levelterm plan. Insurance on educational credit transaction commitments may bewritten up to the amount of the loan commitment less the amount of anyrepayments made on the loan.
26-17-105. Labor union groups.
(a) The lives of a group of individuals may be insured under apolicy issued to a labor union or similar employee organization which union ororganization is deemed the policyholder, to insure members of the union ororganization for the benefit of persons other than the union or organization orany of its officials, representatives or agents, subject to the followingrequirements:
(i) All members or any class of members of the union ororganization are eligible for insurance under the terms of the policy;
(ii) Policy premiums shall be paid by the policyholder, subjectto the following requirements:
(A) Repealed by Laws 1990, ch. 3, 3.
(B) Repealed by Laws 1990, ch. 3, 3.
(C) Repealed by Laws 1990, ch. 3, 3.
(D) If the insured member does not pay any part of the premiumfor his insurance, the policy shall insure all eligible members, except thosewho reject the coverage in writing and those who do not present evidence ofindividual insurability satisfactory to the insurer.
(iii) Repealed by Laws 1990, ch. 3, 3.
(iv) Repealed by Laws 1990, ch. 3, 3.
26-17-106. Trustee groups.
(a) The lives of a group of individuals may be insured under apolicy issued to a trust or the trustees of a fund established or adopted bytwo (2) or more employers, by one (1) or more labor unions or similar employeeorganizations, or by one (1) or more employers and one (1) or more labor unionsor similar employee organizations, which trust or trustees are deemed thepolicyholder, to insure employees of the employers or members of the unions ororganizations, for the benefit of persons other than the employers, unions ororganizations, subject to the following requirements:
(i) No policy shall be issued to insure employees of anyemployer whose eligibility to participate in the fund as an employer arises outof considerations directly related to the employer being a commercialcorrespondent or business client or patron of another employer, except if theother employer exercises substantial control over the business operations ofthe participating employers;
(ii) All employees of the employers, members of the unions ororganizations, or any classes of the employers, union members or organizationmembers are eligible for insurance under the terms of the policy;
(iii) The policy may define "employees" to include:
(A) Retired or former employees;
(B) The individual proprietor or partners, if an employer is anindividual proprietor or a partnership;
(C) The trustees, trustees' employees, or both, if their dutiesare principally connected with the trusteeship;
(D) Employees of one (1) or more subsidiary corporations andthe employees, individual proprietors and partners of one (1) or moreaffiliated corporations, proprietorships or partnerships if the business of theemployer and of the affiliated corporations, proprietorships or partnerships isunder common control;
(E) Directors of a corporate employer.
(iv) Repealed by Laws 1990, ch. 3, 3.
(v) Policy premiums shall be paid by the trustees subject tothe following requirements:
(A) Repealed by Laws 1990, ch. 3, 2,3.
(B) Repealed by Laws 1990, ch. 3, 3.
(C) If the covered person does not pay any part of the premiumfor his insurance, the policy shall insure all eligible persons, except thosewho reject the coverage in writing and those who do not present evidence ofindividual insurability satisfactory to the insurer.
(vi) Repealed by Laws 1990, ch. 3, 3.
(vii) Repealed by Laws 1990, ch. 3, 3.
26-17-107. Repealed by Laws 1990, ch. 3, 3.
26-17-108. Dependents' coverage.
(a) Insurance under any group life insurance policy issuedpursuant to W.S. 26-17-103, 26-17-105, 26-17-106, 26-17-109, 26-17-127 or26-17-128 may be extended to insure the employees or members or any class ofemployees or members against loss due to the death of their spouses anddependent children:
(i) Repealed by Laws 1990, ch. 3, 2,3.
(ii) If the employer or member does not pay any part of thepremium for the spouse's or dependent child's coverage, the policy shall insureall eligible employees or members with respect to their spouses and dependentchildren or any class of employees or members except that an insurer mayexclude or limit the coverage on any spouse or dependent child if evidence ofindividual insurability does not satisfy the insurer;
(iii) Repealed By Laws 2009, Ch. 93, 1.
(iv) Repealed by Laws 1990, ch. 3, 3.
(b) Repealed by Laws 1990, ch. 3, 3.
(c) Repealed by Laws 1990, ch. 3, 3.
(d) Repealed by Laws 1990, ch. 3, 3.
(e) Notwithstanding the provisions of W.S. 26-17-117, only one(1) certificate need be issued for each family unit if a statement concerningany dependent's coverage is included in the certificate.
26-17-109. Credit union group.
(a) The lives of a group of individuals may be insured under apolicy issued to a credit union or a trustee or agent designated by two (2) ormore credit unions, which credit union, trustee or agent is deemed thepolicyholder, to insure members of the credit union for the benefit of personsother than the credit union, trustee, agent or any of their officials, subjectto the following requirements:
(i) All members or all of any class of members of the creditunion are eligible for insurance under the terms of the policy;
(ii) Policy premiums shall be paid by the policyholder from thecredit union's funds and shall insure all eligible members except that aninsurer may exclude or limit the coverage on any member if evidence ofindividual insurability does not satisfy the insurer.
(A) Repealed by Laws 1990, ch. 3, 3.
(iv) Repealed by Laws 1990, ch. 3, 3.
(iii) Repealed by Laws 1990, ch. 3, 3.
(iv) Repealed by Laws 1990, ch. 3, 3.
26-17-110. Provisions required in group contracts; exceptions.
(a) No group life insurance policy shall be delivered in thisstate unless it contains provisions conforming in substance to the provisionsset forth in W.S. 26-17-110 through 26-17-121 and 26-17-130 or provisions whichin the commissioner's opinion are more favorable to the persons insured, or atleast as favorable to the persons insured and more favorable to thepolicyholder, except that:
(i) W.S. 26-17-116 through 26-17-120 and 26-17-130 do not applyto policies issued to a creditor to insure debtors of that creditor;
(ii) The standard provisions required for individual lifeinsurance policies do not apply to group life insurance policies; and
(iii) If the group life insurance policy is on a plan ofinsurance other than the term plan, it shall contain a nonforfeiture provisionwhich in the commissioner's opinion is equitable to the insured persons and tothe policyholder, but nothing in this subsection requires that group lifeinsurance policies contain the same nonforfeiture provisions as are requiredfor individual life insurance policies.
26-17-111. Grace period.
Thepolicyholder is entitled to a grace period of thirty-one (31) days for thepayment of any premium due except the first. The death benefit coveragecontinues in force during the grace period, unless the policyholder gives theinsurer written notice of discontinuance in advance of the date ofdiscontinuance and in accordance with the terms of the policy. The policy mayprovide that the policyholder is liable to the insurer for the payment of a prorata premium for the time the policy is in force during the grace period.
26-17-112. Incontestability.
Thevalidity of the policy shall not be contested, except for nonpayment ofpremium, after it is in force for two (2) years from its date of issue. Nostatement made by any person insured under the policy relating to hisinsurability shall be used in contesting the validity of the insurance withrespect to which the statement is made after the insurance is in force prior tothe contest for a period of two (2) years during the person's lifetime norunless it is contained in a written instrument he signs.
26-17-113. Application; statements are representations.
Acopy of the policyholder's application, if any, shall be attached to the policywhen issued and is a part of the contract. Any statements the policyholder orthe persons insured make are representations and not warranties, and nostatement any person insured makes shall be used in any contest unless a copyof the instrument containing the statement is or has been furnished to theperson or, in the event of death or incapacity of the insured person, to hisbeneficiary or personal representative.
26-17-114. Evidence of insurability.
Thepolicy shall set forth the conditions, if any, under which the insurer reservesthe right to require a person eligible for insurance to furnish evidence ofindividual insurability satisfactory to the insurer as a condition to part orall of his coverage.
26-17-115. Misstatement of age.
(a) The policy shall specify:
(i) That an equitable adjustment of premiums or of benefits orboth shall be made in case the age of a person insured is misstated; and
(ii) The method of adjustment to be used.
26-17-116. Payment of benefits.
(a) Any sum due by reason of the death of the person insured ispayable to the beneficiary designated by the person insured, except that if thepolicy refers to family status and does not specify family members by name, thebeneficiary may be the family member specified by status in the policy, subjectto:
(i) The provisions of the policy as to all or any part of thesum in case there is no designated beneficiary living at the time of theinsured's death; and
(ii) Any right the insurer reserved in the policy and set forthin the certificate to pay at its option a part of the sum not exceeding twothousand dollars ($2,000.00) to any person appearing to the insurer to beequitably entitled thereto by reason of having incurred funeral or otherexpenses incident to the last illness or death of the person insured.
(b) Payment of benefits shall be subject to the interestprovisions of W.S. 26-16-112 and time requirements of W.S. 26-15-124, providedthe interest provisions of W.S. 26-16-112 shall not apply to variable contractswhich provide for insurance or annuity benefits which may vary according to theinvestment experience of any separate account or accounts maintained by theinsurer as to such contract.
26-17-117. Certificate of policyholders.
Theinsurer shall issue to the policyholder for delivery to each person insured anindividual certificate with statements describing the insurance protection towhich he is entitled, to whom the insurance benefits are payable, anydependent's coverage included in the certificate, and the rights and conditionsset forth in W.S. 26-17-118 through 26-17-120 and 26-17-130.
26-17-118. Conversion on termination of eligibility.
(a) If the insurance, or any portion of it, on a person ordependent of a person covered under the policy ceases because of termination ofemployment or of membership in any of the classes eligible for coverage underthe policy, the insurer shall offer to issue to him, without evidence ofinsurability, an individual life insurance policy without disability or othersupplementary benefits, provided:
(i) Application for the policy shall be made, and the firstpremium paid to the insurer, within thirty-one (31) days after termination;
(ii) The policy, at the person's option, shall be on any one (1)of the forms customarily issued by the insurer at the age and for the amountapplied for, except that the group policy may exclude the option to elect terminsurance;
(iii) The policy shall be in an amount not exceeding the amountof life insurance which ceases because of the termination less the amount ofany life insurance for which the person is or becomes eligible under the sameor any group policy within thirty-one (31) days after the termination, providedthat any amount of insurance which matures on or before the date of suchtermination as an endowment payable to the person insured, whether in one (1)sum, in installments or in the form of an annuity, for the purposes of thisprovision, shall not be included in the amount which is considered to ceasebecause of the termination; and
(iv) The premium on the individual policy shall be at theinsurer's then customary rate applicable to the form and amount of theindividual policy, to the class of risk to which the person then belongs and tohis age attained on the effective date of the individual policy.
(b) Subject to the conditions set forth in subsection (a) ofthis section, the conversion privilege is available:
(i) To a surviving dependent, if any, at the death of theemployee or member concerning the coverage under the group policy whichterminates by reason of the death; and
(ii) To the dependent of the employee or member upon terminationof the dependent's coverage if the employee or member remains insured under thegroup policy and if the dependent ceases to be a qualified family member underthe group policy.
26-17-119. Conversion on termination of policy.
(a) If the group policy terminates or is amended to terminatethe insurance of any class of insured persons, any person insured thereunder atthe date of the termination whose insurance terminates, including the insureddependent of a covered person, which insured or insured dependent has been soinsured for at least three (3) years prior to the termination date is entitledto have issued to him by the insurer an individual life insurance policy,subject to the same conditions provided by W.S. 26-17-118, except that thegroup policy shall provide that the amount of the individual policy is theamount of the person's life insurance protection ceasing because of thetermination or amendment of the group policy, less the amount of any lifeinsurance for which he is or becomes eligible under any group policy issued orreinstated by the same or another insurer within thirty-one (31) days after thetermination.
(i) Deleted by Laws 1990, ch. 3, 2.
(ii) Repealed by Laws 1990, ch. 3, 2,3.
26-17-120. Death pending conversion.
Ifa person insured under the group policy, or the insured dependent of a coveredperson, dies during the period within which he would have been entitled to havean individual policy issued to him in accordance with W.S. 26-17-118 or26-17-119 and before the individual policy is effective, the amount of lifeinsurance which he would have been entitled to have issued under the individualpolicy is payable as a claim under the group policy, whether or not applicationfor the individual policy or the payment of the first premium has been made.
26-17-121. Information to debtor insured under creditor's policy.
Apolicy issued to a creditor to insure debtors of the creditor shall contain aprovision that the insurer shall furnish to the policyholder for delivery toeach debtor insured under the policy a form which shall contain a statementthat the life of the debtor is insured under the policy and that any deathbenefit paid thereunder by reason of his death shall first be applied to reduceor extinguish the indebtedness.
26-17-122. Notice as to conversion right.
Ifany individual insured under a group life insurance policy delivered in thisstate is entitled under the policy to have an individual life insurance policyissued to him without evidence of insurability, subject to making ofapplication and payment of the first premium within the period specified in thepolicy, and if the individual is not given notice of the existence of thatright at least fifteen (15) days prior to the expiration date of the period,the individual has an additional period within which to exercise the right, butnothing in this section continues any insurance beyond the period provided inthe policy. This additional period shall expire fifteen (15) days immediatelyafter the individual is given the notice, but no additional period shall extendbeyond sixty (60) days immediately after the expiration date of the periodprovided in the policy. Written notice presented to the individual or mailed bythe policyholder or the insurer to the individual's last known address asfurnished by the policyholder constitutes notice for the purpose of thissection.
26-17-123. Readjustment of premiums.
Anygroup life insurance contract may provide for a readjustment of the premiumrate based upon the experience thereunder.
26-17-124. Application of dividends; rate reductions.
Ifa policy dividend is declared or a rate reduction is made or continued for anyyear of insurance under any group life insurance policy issued to any policyholder,the excess, if any, of the aggregate dividends or rate reductions under thepolicy and all other group insurance policies of the policyholder over theaggregate expenditure for insurance under the policies made from fundscontributed by the policyholder, or by an employer of insured persons, or by aunion or association to which the insured persons belong, includingexpenditures made in connection with administration of the policies, shall beapplied by the policyholder for the sole benefit of insured employees ormembers.
26-17-125. "Wholesale life insurance" defined.
(a) "Wholesale life insurance" means a plan of lifeinsurance, other than salary savings life insurance or pension trust insuranceand annuities, under which individual policies are issued:
(i) To the employees of any employer; and
(ii) On the lives of not less than four (4) employees at date ofissue.
(b) Premiums for the policies shall be paid either wholly fromthe employer's funds, or funds the employer contributes, or partly from thosefunds and partly from funds the insured employees contribute.
26-17-126. Assignment of incidents of ownership under group lifeinsurance policy.
(a) Subject to the terms of the policy, or pursuant to anagreement among the insured, the group policyholder and the insurer, any personinsured under a group life insurance policy may assign to any person, otherthan the policyholder, any ownership or part thereof conferred on him by thepolicy or by the law, including specifically, but not limited to, the right toexercise the conversion privilege and the right to name a beneficiary.
(b) Any assignment by the insured is valid for the purpose ofvesting in the assignee, in accordance with any provisions included therein asto the time at which it is effective, any ownership, rights, title and interestso assigned, but without prejudice to the insurer because of any payment it maymake or individual policy it may issue prior to the receipt of notice of theassignment.
26-17-127. Additional groups.
(a) Group life insurance offered to a resident under a grouplife insurance policy issued to a group other than one described in W.S.26-17-103 through 26-17-106 and 26-17-109 is subject to the followingrequirements:
(i) A group life insurance policy shall not be delivered inthis state unless the commissioner finds that:
(A) The issuance of the group policy is not contrary to thebest interest of the public;
(B) The issuance of the group policy would result in economiesof acquisition or administration;
(C) The benefits are reasonable in relation to the premiumscharged;
(D) The insurer possesses and maintains capital and surplusrequirements provided by W.S. 26-3-108.
(ii) Group life insurance coverage shall not be offered in thisstate by an insurer under a policy issued in another state unless thecommissioner determines the requirements of paragraph (i) of this subsectionare met and the insurer files with the commissioner:
(A) A copy of the group master contract;
(B) A copy of the statute of the state where the group policyis issued that authorizes the issuance of the group policy;
(C) Evidence of approval of the group policy in the state wherethe group policy is issued; and
(D) Copies of all supportive material used by the insurer tosecure approval of the group in the state where the group policy is issued.
(iii) If the commissioner fails to make the determinationprovided by paragraph (ii) of this subsection within forty-five (45) days offiling by the insurer of the documents required by paragraph (ii) of thissubsection, the requirements of paragraph (i) of this subsection are deemed tobe met;
(iv) An insurer may exclude or limit the coverage on any personif evidence of individual insurability does not satisfy the insurer.
26-17-128. Insurance for associations.
(a) The lives of a group of individuals may be insured under apolicy issued to an association or a trust or the trustee of a fund establishedor adopted for the benefit of members of one (1) or more associations. Theassociation shall have at the time the policy is first issued a minimum offifty (50) persons eligible for insurance, shall have been organized andmaintained in good faith for purposes other than that of obtaining insurance,shall have been in active existence for at least one (1) year and shall have aconstitution and bylaws which provide that:
(i) The association holds regular meetings not less thanannually to further the members' purposes;
(ii) Except for credit unions, the association collects dues orsolicits contributions from members; and
(iii) The members have voting privileges and representation onthe governing board and committees.
(b) The policy allowed by subsection (a) of this section issubject to the following requirements:
(i) The policy may insure one (1) or more of the following orall of any class of the following for the benefit of persons other than theemployee's employer:
(A) Members of the association;
(B) Employees of the association; or
(C) Employees of members.
(ii) If the covered person does not pay any part of the premiumfor his insurance, the policy shall insure all eligible persons, except thosewho reject the coverage in writing and except as provided in paragraph (iii) ofthis subsection; and
(iii) An insurer may exclude or limit the coverage on any personif evidence of individual insurability does not satisfy the insurer.
26-17-129. Notice of compensation.
(a) The insurer shall distribute to prospective insureds awritten notice that compensation shall or may be paid for a program ofinsurance which if issued on a group basis would qualify under W.S. 26-17-127or 26-17-128, if compensation of any kind shall or may be paid to:
(i) A policyholder or sponsoring or endorsing entity in thecase of a group policy; or
(ii) A sponsoring or endorsing entity in the case of individual,blanket or franchise policies marketed by means of direct responsesolicitation.
(b) Notice required by this section shall be distributed:
(i) Whether compensation is direct or indirect; and
(ii) Whether compensation is:
(A) Paid to or retained by the policyholder or sponsoring orendorsing entity; or
(B) Paid to or retained by a third party at the direction of thepolicyholder, sponsoring or endorsing entity or any entity affiliated by way ofownership, contract or employment.
(c) The notice required by this section shall be placed on oraccompany any application or enrollment form provided to prospective insureds.
(d) As used in this section:
(i) "Direct response solicitation" means asolicitation through a sponsoring or endorsing entity by the mails, telephoneor other mass communications media; and
(ii) "Sponsoring or endorsing entity" means an organizationwhich has arranged for the offering of a program of insurance in a manner whichcommunicates that eligibility for participation in the program is dependentupon affiliation with the organization or that it encourages participation inthe program.
26-17-130. Continuation during disability.
(a) Where active employment is a condition of insurance, thegroup policy shall contain a provision that an insured may continue coverageduring the insured's total disability as provided in this subsection by timelypayment to the policyholder of that portion, if any, of the premium that wouldhave been required from the insured had total disability not occurred. Thecontinuation shall be on a premium paying basis for a period not beyond theearlier of:
(i) Six (6) months from the date on which the total disabilitystarted;
(ii) Approval by the insurer of continuation of the coverageunder any disability provision contained in the group insurance policy; or
(iii) The discontinuance of the group insurance policy.
