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Title 26 Insurance Code

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Change 1

What to do with it
As published

26-17-128. Insurance for associations.

(a) The lives of a group of individuals may be insured under a policy issued to an association or a trust or the trustee of a fund established or adopted for the benefit of members of one (1) or more associations. The association shall have at the time the policy is first issued a minimum of fifty (50) persons eligible for insurance, shall have been organized and maintained in good faith for purposes other than that of obtaining insurance, shall have been in active existence for at least one (1) year and shall have a constitution and bylaws which provide that: (i) The association holds regular meetings not less than annually to further the members' purposes; (ii) Except for credit unions, the association collects dues or solicits contributions from members; and (iii) The members have voting privileges and representation on the governing board and committees. (b) The policy allowed by subsection (a) of this section is subject to the following requirements: (i) The policy may insure one (1) or more of the following or all of any class of the following for the benefit of persons other than the employee's employer: (A) Members of the association; (B) Employees of the association; or (C) Employees of members. (ii) If the covered person does not pay any part of the premium for his insurance, the policy shall insure all eligible persons, except those who reject the coverage in writing and except as provided in paragraph (iii) of this subsection; and (iii) An insurer may exclude or limit the coverage on any person if evidence of individual insurability does not satisfy the insurer.

Your change, as a redline

26-17-128. Insurance for associations.

(a) The lives of a group of individuals may be insured under a policy issued to an association or a trust or the trustee of a fund established or adopted for the benefit of members of one (1) or more associations. The association shall have at the time the policy is first issued a minimum of fifty (50) persons eligible for insurance, shall have been organized and maintained in good faith for purposes other than that of obtaining insurance, shall have been in active existence for at least one (1) year and shall have a constitution and bylaws which provide that: (i) The association holds regular meetings not less than annually to further the members' purposes; (ii) Except for credit unions, the association collects dues or solicits contributions from members; and (iii) The members have voting privileges and representation on the governing board and committees. (b) The policy allowed by subsection (a) of this section is subject to the following requirements: (i) The policy may insure one (1) or more of the following or all of any class of the following for the benefit of persons other than the employee's employer: (A) Members of the association; (B) Employees of the association; or (C) Employees of members. (ii) If the covered person does not pay any part of the premium for his insurance, the policy shall insure all eligible persons, except those who reject the coverage in writing and except as provided in paragraph (iii) of this subsection; and (iii) An insurer may exclude or limit the coverage on any person if evidence of individual insurability does not satisfy the insurer.

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Who it helps, what it costs, what it fixes. It is what persuades people to support it.

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