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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

103

:
LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS






Subchapter

005
:
GROUP LIFE INSURANCE










 

§

3807. Public employee groups

The lives of a

group of individuals may be insured under a policy issued to the departmental

head of any department or agency of the state of Vermont, its political

subdivisions or 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

or departmental head shall be deemed the policyholder, to insure members of

such association or public employees for the benefit of persons other than the

departmental head, the association or any of its officials, subject to the

following requirements:

(1) The persons

eligible for insurance under the policy shall be all of the members of the

association or employees of the department, or all of any class or classes

thereof determined by conditions pertaining to their employment, or to

membership in the association, or both. The policy may provide that the term

"employee" shall include retired employees.

(2) The premium

for the policy shall be paid by the policyholder, either from the association's

own funds, or from charges collected from the insured members or employees

specifically for the insurance, or from both, or as may otherwise be authorized

by existing or future legislation. Any charges collected from the insured

members or employees specifically for the insurance, and the dues of the association

if they include the cost of insurance, shall be collected through deductions by

the employer from salaries of the members or employees. Such deductions from

salary may be paid by the employer to the association or directly to the

insurer. No policy may be placed in force unless and until at least 75 percent

of the then eligible members of the association or employees of the department,

excluding any as to whom evidence of individual insurability is not

satisfactory to the insurer, have elected to be covered and have authorized

their employer to make the required deductions from salary.

(3) Charges

collected from the insured members or employees specifically for the insurance,

and the dues of the association if they include the cost of insurance, shall be

determined according to each attained age or in not less than four reasonably

spaced attained age groups. In no event shall the rate of such dues or charges

be level for all members or employees regardless of attained age.

(4) The policy

must cover at least ten persons at the date of issue.

(5) The amounts

of insurance under the policy must be based upon some plan precluding

individual selection either by the members, employees, or by the association.

(6) As used

herein "employees" means employees of the United States government,

or of any state, or of any political subdivision or instrumentality of any of

them.

(7) This section

does not preclude the insuring of public employees under any other applicable

provision of this subchapter or law of this state. (1967, No. 344 (Adj. Sess.),

§ 1 (ch. 2, subch. 6, § 7).)