Section 408:15 Group Life Insurance; Definitions.
No policy or certificate of group life insurance shall be issued or delivered in this state unless the policy is issued to a group that conforms to one of the following descriptions:
I. A policy issued to an employer, or to the trustees of a fund established by an employer, which employer or trustees shall be deemed the policyholder, to insure employees of the employer for the benefit of persons other than the employer, subject to the following requirements:
(a) The employees eligible for insurance under the policy shall be all of the employees of the employer, or all of any class or classes thereof determined by conditions pertaining to their employment. The policy may provide that the term ""employees'' shall include the employees of one or more subsidiary corporations and the employees, individual proprietors, and partners of one or more affiliated corporations, proprietors or partnerships if the business of the employer and of such affiliated corporations, proprietors or partnerships is under common control through stock ownership, contract, or otherwise. The policy may provide that the term ""employees'' shall include the individual proprietor or partners if the employer is an individual proprietor or a partnership. The policy may provide that the term ""employees'' shall include retired employees.
(b) The premium for the policy shall be paid by the policyholder, either from the employer's funds, or from funds contributed by the insured employees, or from both. A policy on which no part of the premium is to be derived from funds contributed by the insured employees must insure all eligible employees, or all except any as to whom evidence of individual insurability is not satisfactory to the insurer.
(c) The amounts of insurance under the policy must be based upon some plan precluding individual selection either by the employees or by the employer or trustees.
II. A policy issued to a creditor or to the trustees of a fund established by one or more creditors, which creditor or trustees shall be deemed the policyholder, to insure debtors of the creditor or creditors, subject to the following requirements:
(a) The debtors eligible for insurance under the policy shall be all the debtors of the creditor or creditors whose indebtedness is repayable in installments, or all of any class or classes thereof determined by conditions pertaining to the indebtedness or to the purchase giving rise to the indebtedness. The policy may provide that the term ""debtors'' shall include the debtors of one or more subsidiary corporations, and the debtors of one or more affiliated corporations, proprietors or partnerships if the business of the policyholder and of such affiliated corporations, proprietors or partnerships is under common control through stock ownership, contract, or otherwise.
(b) The premium for the policy shall be paid by the policyholder, either from the creditor or creditors' funds, or from charges collected from the insured debtors, or from both. A policy on which part or all of the premium is to be derived from the collection from the insured debtors of identifiable charges not required of uninsured debtors shall not include, in the class or classes of debtors eligible for insurance, debtors under obligations outstanding at its date of issue without evidence of individual insurability unless at least 75 percent of the then eligible debtors of each creditor elect to pay the required charges. A policy on which no part of the premium is to be derived from the collection of such identifiable charges must insure all eligible debtors, or all except any as to whom evidence of individual insurability is not satisfactory to the insurer.
(c) The policy may be issued only if the group of eligible debtors of each creditor is then receiving new entrants at the rate of at least 100 persons yearly, or may reasonably be expected to receive at least 100 new entrants during the first policy year, and only if the policy reserves to the insurer the right to require evidence of individual insurability if less than 75 percent of the new entrants become insured.
(d) The amount of insurance on the life of any debtor shall at no time exceed the amount owed by him which is repayable in installments to his creditor.
(e) The insurance shall be payable to the policyholder. Such payment shall reduce or extinguish the unpaid indebtedness of the debtor to the extent of such payment.
III. A policy issued to a labor union, which shall be deemed the policyholder, to insure members of such union for the benefit of persons other than the union or any of its officials, representatives or agents, subject to the following requirements:
(a) The members eligible for insurance under the policy shall be all of the members of the union, or all of any class or classes thereof determined by conditions pertaining to their employment, or to membership in the union, or both.
(b) The premium for the policy shall be paid by the policyholder, either wholly from the union's funds, or partly from such funds and partly from funds contributed by the insured members specifically for the insurance. No policy may be issued on which the entire premium is to be derived from funds contributed by the insured members specifically for their insurance. A policy on which part of the premium is to be derived from funds contributed by the insured members specifically for their insurance may be placed in force only if at least 75 percent of the then eligible members, excluding any as to whom evidence of individual insurability is not satisfactory to the insurer, elect to make the required contributions. A policy on which no part of the premium is to be derived from funds contributed by the insured members specifically for their insurance must insure all eligible members, or all except any as to whom evidence of individual insurability is not satisfactory to the insurer.
(c) The policy must cover at least 25 members at date of issue.
(d) The amounts of insurance under the policy must be based upon some plan precluding individual selection either by the members or by the union.
IV. A policy issued to the trustees of a fund established by 2 or more employers in the same industry or by 2 or more labor unions, which trustees shall be deemed the policyholder, to insure employees of the employers or members of the unions for the benefit of persons other than the employers or the unions, subject to the following requirements:
(a) The persons eligible for insurance shall be all of the employees of the employers or all of the members of the unions, or all of any class or classes thereof determined by conditions pertaining to their employment, or to membership in the unions, or to both. The policy may provide that the term ""employees'' shall include the individual proprietor or partners if an employer is an individual proprietor or a partnership. The policy may provide that the term ""employees'' shall include the trustees or their employees, or both, if their duties are principally connected with such trusteeship. The policy may provide that the term ""employees'' shall include retired employees.
(b) The premiums for the policy shall be paid by the policyholder either wholly from funds contributed by the employers of the insured persons or partly from such funds and partly from funds contributed by the insured employees.
(c) The policy must cover at least 100 persons at date of issue.
(d) The amounts of insurance under the policy must be based upon some plan precluding individual selection either by the insured persons or by the policyholder, employers, or unions.
V. A policy issued to any non-profit industrial association (to be deemed the policyholder) in existence for a period of at least 10 years and organized for purposes other than obtaining insurance, subject to the following requirements:
(a) If 2 or more members of the association, or any class or classes of members thereof determined by conditions pertaining to insurance, elect to insure their employees or any class or classes of employees determined by conditions pertaining to employment; and
(b) The total number of insured employees must not be less than 100.
(c) The insurance premiums are paid by such members to the association; each member, insofar as applicable to his own employees, may collect part of the premium from insured employees; and the method of apportionment of the premium payment between himself and his employees may be varied as among individual members; and
(d) Not less than 75 percent of the eligible employees of each participating member may be insured where the employees pay a part of the premium. The word ""employees'' as used in this subparagraph shall also include the individual members and employees of such association.
(e) The amounts of insurance under the policy must be based upon some plan precluding individual selection either by the employees or by the members of the association.
VI. A policy issued to a credit union or to the trustees of a fund established by one or more credit unions, which credit union or trustees shall be deemed the policyholder to insure members of such credit union or credit unions for the benefit of persons other than the credit union or credit unions or trustees or any of their officials, subject to the following requirements:
(a) The members eligible for insurance shall be all of the members of the credit union or credit unions, or all of any class or classes thereof determined by conditions pertaining to membership in the credit union or credit unions.
(b) The premium for the policy shall be paid by the policyholder, either wholly from the funds of the credit union or credit unions, or partly from such funds and partly from funds contributed by the insured members specifically for their insurance, or wholly from funds contributed by the insured members specifically for their insurance. A policy on which all or a part of the premium is to be derived from funds contributed by the insured members specifically for their insurance may be placed in force only if at least 75 percent of the then eligible members of each credit union, excluding any as to whom evidence of insurability is not satisfactory to the insurer, elect to make the required contributions. A policy on which no part of the premium is to be derived from funds contributed by the insured members specifically for their insurance must insure all eligible members, or all except any as to whom evidence of individual insurability is not satisfactory to the insurer.
(c) The policy must cover at least 25 members at date of issue.
(d) The amounts of insurance under the policy must be based upon some plan precluding individual selection either by the members or by the credit union or credit unions.
VII. A policy issued to an association of public employees formed for purposes other than obtaining insurance and having, when the policy is placed in force, a membership in the classes eligible for insurance of not less than 75 percent of the number of employees eligible for membership in such classes, which association shall be deemed the policyholder, to insure members of such association for the benefit of persons other than the association or any of its officials, subject to the following requirements:
(a) The persons eligible for insurance under the policy shall be all of the members of the association, or all of any class or classes thereof determined by conditions pertaining to their employment, or to membership in the association, or both.
(b) The premium for the policy shall be paid by the policyholder, either from the association's own funds, or charges collected from the insured members specifically for insurance, or from both. No policy may be placed in force unless and until at least 75 percent of the then eligible members of the association, excluding any as to whom evidence of individual insurability is not satisfactory to the insurer, have elected to be covered.
(c) The policy must cover at least 25 persons at date of issue.
(d) The amounts of insurance under the policy must be based upon some plan precluding individual selection by the members.
(e) As used herein, ""public employees'' means employees of the United States government, or of any state, county, municipality, or political subdivision or instrumentality of any of them.
VIII. (a) A policy or certificate issued to a resident of this state under a group life insurance policy may be issued to a group other than one described in paragraphs I through VII provided the commissioner finds that:
(1) The issuance or delivery of the policy or certificate is not contrary to the best interest of the public.
(2) The issuance or delivery of the policy or certificate would result in economies of acquisition or administration.
(3) The benefits are reasonable in relation to the premiums charged.
(4) The premium for the policy shall be paid either from the policyholder's funds or from funds contributed by the covered persons, or from both, and shall insure all eligible covered persons, or all except any as to whom evidence of individual insurability is not satisfactory to the insurer.
(b) Any filing made in relation to a discretionary group life insurance policy or certificate that was approved by the department prior to July 1, 2009 shall be deemed to meet the requirements of this paragraph, unless the commissioner acts at any time to revoke such approval after a hearing pursuant to RSA 400-A:17.
IX. Notwithstanding the above, any such policy of group life insurance issued pursuant to paragraphs I-VII may be extended to provide group life insurance for an employee, or other member of the group, his or her spouse, child or children, or other dependents.
Source. 1947, 175:1, par. 14-a. RSA 408:15. 1955, 79:1; 195:1; 300:1. 1959, 176:1, 2; 190:1, 2. 1963, 99:1; 314:1. 1965, 31:1; 254:1. 1967, 163:1. 1970, 37:8, 9. 1971, 446:1-6. 1973, 197:1; 509:1-4. 1975, 161:1. 1977, 78:1-5. 1981, 183:1. 2004, 187:10, eff. July 31, 2004. 2009, 243:1-3, eff. July 1, 2009.