31A-22-504 - Trustee groups.
31A-22-504. Trustee groups.
Group life insurance policies may be issued to policyholders who are the trustees of afund established by two or more employers, by one or more labor unions, or similar employeeorganizations, or by one or more employers and one or more labor unions or similar employeeorganizations, to insure employees of the employers or members of the unions or theorganizations for the benefit of persons other than the employers, the unions, or the organizations.These policies are subject to the following requirements:
(1) The persons eligible for insurance are all of the employees of the employers or all ofthe members of the unions or organizations, or all of any classes of employees or members. Thepolicy may include retired employees, elected and appointed officials of a public agency if theemployees of the agency are insured, and individual proprietors or partners who are employers. The policy may include the trustees or their employees, or both, if their duties are principallyconnected with the trusteeship.
(2) The premiums for the policy are paid by the policyholders from funds contributed bythe employers, unions, or similar employee organizations, or from funds contributed by theinsured persons, or any combination of these. Except as provided under Section 31A-22-512, apolicy on which no part of the premium is contributed by the insured persons specifically for theirinsurance is required to insure all eligible persons.
Enacted by Chapter 242, 1985 General Session