§3804. Labor union groups

Link to law: http://legislature.vermont.gov/statutes/section/08/103/03804
Published: 2015

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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










 

§

3804. Labor union groups

The lives of a

group of individuals may be insured under 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:

(1) 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.

(2) 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 their 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 the

insurance must insure all eligible members, or all except any as to whom

evidence of individual insurability is not satisfactory to the insurer.

(3) The policy

must cover at least 10 members at date of issue.

(4) The amounts

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

individual selection either by the members or by the union. (1967, No. 344

(Adj. Sess.), § 1 (ch. 2, subch. 6, § 4).)
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