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§ 17-203. Trust or trustees as policyholder; benefit of persons other than the employees, union...

West's Annotated Code of MarylandInsurance

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 17. Group Life Insurance
Subtitle 2. Group Requirements (Refs & Annos)
MD Code, Insurance, § 17-203
§ 17-203. Trust or trustees as policyholder; benefit of persons other than the employees, unions or organizations
In general
(a) Subject to the requirements of this section, a policy may be issued to a trust or to the trustees of a fund established or adopted by two or more employers, or by one or more labor unions or similar employee organizations, or by one or more employers and one or more labor unions or similar employee organizations, which trust or trustees shall be deemed the policyholder, to insure employees of the employers or members of the unions or organizations for the benefit of persons other than the employers or the unions or organizations.
Employees eligible for insurance
(b)(1) The persons eligible for insurance shall be all of the employees of the employers or all of the members of the unions or organizations, or all of any class or classes of employees or members.
(2) The policy may provide that the term “employees” shall include:
(i) the employees of one or more subsidiary corporations, and the employees, individual proprietors, and partners of one or more affiliated corporations, proprietorships, or partnerships if the business of the employer and of the affiliated corporations, proprietorships, or partnerships is under common control;
(ii) the individual proprietor or partners if the employer is an individual proprietorship or partnership;
(iii) retired employees, former employees, and directors of a corporate employer; and
(iv) trustees or their employees, or both, if their duties are principally connected with the trusteeship.
Premium paid from employer’s funds, funds contributed by employees, or both
(c)(1) The premium for the policy shall be paid from funds contributed by the employer or employers of the insured persons, or by the union or unions or similar employee organizations, or by both, or from funds contributed by the insured persons or from both the insured persons and the employers or unions or similar employee organizations.
(2) Except as provided in paragraph (3) of this subsection, a policy on which no part of the premium is to be derived from funds contributed by the insured persons specifically for their insurance must insure all eligible persons, except those who reject the coverage in writing.
(3) An insurer may exclude or limit the coverage on any person as to whom evidence of individual insurability is not satisfactory to the insurer.

Credits

Added by Acts 1999, c. 659, § 1, eff. Oct. 1, 1999. Amended by Acts 2001, c. 29, § 1, eff. April 10, 2001.
Formerly Art. 48A, § 420.
MD Code, Insurance, § 17-203, MD INSURANCE § 17-203
Current with all legislation from the 2023 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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