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policy dividends, to the person insured or to some beneficiary or beneficiaries, other than the association or any of its officers or directors, as such, and shall also provide for the issuance of a certificate to the association for delivery to the person insured or to such beneficiary, as evidence of such insurance.

(7) A policy insuring the members of one or more troops or units of the state troopers or state police of any state, issued to the commanding officer of the state troopers or state police, who shall be deemed the policyholder, the premium on which is to be paid by the members insured; or a policy covering the members of (any] one or more duly incorporated policemen's benevolent (association or of an association organization] associations or of one or more associations or organizations of uniformed firemen or volunteer firemen which association or organization shall have been in existence for at least [five] two years prior to the issuance of such policy and which shall have ninety members at the time of the issuance of such policy, which shall be issued to such association or to a trustee or trustees of a fund established, or participated in, by one or more of such associations or organizations as the policyholder. If the opportunity to take such insurance is offered to all eligible members of a unit of such state troopers or state police, or to all eligible members of such incorporated policemen's benevolent association or of an association or organization of uniformed firemen or volunteer firemen, then not less than (seventy-five) fifty percent of such members or, if less, fifty or nore of such members may be so insured. If the insurance is limited to

eligible members who are employed as state troopers, policemen or firemen, then not less than sixty percent or five hundred of such members, whichever is less, may be so insured. Such policy shall provide for the payment of benefits, except policy dividends, to the person insured or to some beneficiary or beneficiaries, other than such commanding officer or such association or any of its officials, as such, and shall also provide for the issuance of a certificate to the policyholder for delivery to the person insured or to such beneficiary, as evidence of such insurance. For the purposes of this paragraph any association currently holding, premium dividends as a result of policies issued under this section shall be permitted to maintain said dividends for the general purposes of the entire membership. For the purposes of this paragraph the term "eligible members of an association of volunteer firemen" means members who perform services in fire-fighting duties. The amounts of insurance may be based upon

a plan which permits a limited number of selections by the members if the selections offered utilize a consistent pattern of

grading the amounts of insurance for individual group members so that the resulting pattern of coverage is reasonable.

(8) (A) A policy issued to a municipal corporation or a public housing authority, which corporation or authority shall be deemed the policy holder, insuring, with or without evidence of individual insurability satisfactory to the insurer, not less than twenty-five employees of such corporation or authority, except that in each of the villages of Croton-on-Hudson and Lloyd Harbor not less than ten such employees and insuring all of such employees or all of any class or classes thereof determined by conditions pertaining to the employment, for amounts of insurance on each person insured based upon some plan which will preclude individual selection. However, such a plan may permit a limited number of selections by employees if the selections offered utilize a consistent pattern of grading the amounts of insurance for individual group members so that the resulting pattern of coverage is reasonable.

(B) The premium for the policy may be paid either by the policyholder or by the insured employees, or both, in the manner provided in section ninety-three of the general municipal law. If a part of the premium is to be derived from funds contributed by insured employees, the policy must insure not less than seventy-five percent of all eligible employees. Such policy shall provide for the payment of benefits to the person insured or to some beneficiary or beneficiaries other than the municipal corporation or the public housing authority, and shall also provide for the issuance of a certificate to the policyholder for delivery to the person insured or to such beneficiary, as evidence of such insurance. A policy on which no part of the premium is to be derived from funds contributed by the insured employees specifically for their insurance must insure all eligible employees, or all except any as to EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

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(C) Subject to the constitution and general laws of this state, every
municipal corporation or public housing authority is empowered to
tract by its fiscal or disbursing officer with an authorized life in-
surance company for group life insurance on the lives of its employees.

(9). A policy issued to the state covering, with or without evidence of
individual insurability satisfactory to the insurer, persons who are
managerial or confidential employees, or retired managerial or confiden-
tial employees, of governments or public employers for the purposes of
article fourteen of the civil service law. The state shall be deemed to
be the policyholder. With respect to its employees, the state and each
other participating government or public employer shall be deemed to be
the employer: The premiums or subscription charges may be derived from
funds contributed entirely by insured employees and retired employees or
by insured employees and retired employees and the employer jointly or
entirely by

by the employer. If the premiums or subscription charges are
derived from funds contributed wholly by the employer, all eligible
ployees are to be covered. If Çany] all or part of the premiums or sub-
scription charges are to be derived from funds contributed by insured
employees and if the opportunity to take such insurance is offered to
all eligible employees of an employer, then such policy must cover not
less than forty percent of such employees, the calculation being with
respect to each employer individually! The amounts of insurance may be
based
upon

plan which permits a limited number of selections by the
employees if the selections offered utilize a consistent pattern of
grading the amounts of insurance for individual group members so that
the resulting pattern of coverage is reasonable.

(10), A policy, issued to an association, or to a trustee or trustees of a fund established, created or maintained for the benefit of members of

more associations, all of whose eligible members have the same profession, trade or occupation, which association or associations have been organized and maintained in good faith for purposes principally other than that of obtaining, insurance and have been in active existence for at least two years. The policy shall insure members, or employees of members, of such association or associations [for the benefit of persons],, and except as provided in paragraph five of subsection (a) of section three thousand two hundred twenty of this chapter, such policy shall provide for the payment of benefits to the person insured or some beneficiary or beneficiaries other than employers and the association or associations, or any officials, representatives, trustees or agents thereof and shall provide for the issuance of a certificate to the persons insured

or such. beneficiary as evidence of such insurance. The members or employees eligible for the insurance under the policy shall be all the members who have not attained any limiting age specified in the policy, or all such members and their employees, or all of any class or classes thereof determined by conditions pertaining to their employment or to association membership or both. The premium for the policy shall be paid by, the association or trustee or trustees either (wholly) from funds contributed by the association or by the insured individuals or from funds contributed jointly by the association and insured individuals specifically for their insurance. A policy on which all or

part of the premium is to be derived from funds contributed by the insured individuals specifically for their insurance must insure at least [seventy-five] fifty percent of the then eligible individuals or a minimum of -] two hundred individuals, whichever is less, excluding any as to whom evidence of individual insurability is not satisfactory to the insurer. A policy on which no part of the premium is to be derived from funds contributed by the insured individuals specifically for their insurance must insure all eligible individuals, excluding any as to whom evidence of individual insurability is not satisfactory to the insurer. The policy must insure at least one hundred individuals at date of issue. The amounts of insurance on employees or members insured under the policy shall be based upon some plan precluding individual selection. However, such a plan may permit a limited number of selections by employees or members if the selections offered utilize con sistent pattern of grading the amounts of insurance for individual group members so that the resulting pattern of coverage is reasonable. If policy dividend is declared or a reduction in rate is made under such a policy, the excess, if any, of the aggregate dividends rate reductions under the policy over the aggregate expenditure for insurance under such policy made from association or employer funds, including ex

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penditures made in connection with administration of such policy, shall be applied by the policyholder for the sole benefit of the insured individuals.

(11) A policy, covering persons employed pursuant to 32 U.S.C. $ 709, members of the national guard on full-time training duty under provisions of such title 32, or on active duty or active duty for training under provisions of title 10 of the United States Code, under the fulltime, manning program, issued to the chief of staff to the governor, who shall be deemed the policyholder, or to a trustee or trustees of a fund established, created, or maintained for the benefit of such individuals insured, which trustee or trustees shall be deemed the policyholder, the premium of which is to be paid by the individuals insured either directly or by deduction from wages or salary. The policy must insure at least (seventy-five] fifty percent or four hundred of the individuals eligible for such insurance, whichever is

less.

Such policy shall provide for the payment of benefits to the individual insured or to some beneficiary or beneficiaries other than to the aforesaid trustee or trustees or the chief of staff to the governor. The policy shall also provide for the issuance of a certificate to the policyholder for delivery to the individual insured or to such beneficiary, as evidence of such insurance. The amounts of insurance may be based upon a plan which permits a limited number of selections by the members provided the selections offered utilize a consistent pattern of grading the amounts of insurance for individual group members so that the resulting pattern of coverage is reasonable.

§ 7. Subsection (b) of section four thousand two hundred sixteen of such law is amended by adding three new paragraphs twelve, thirteen and fourteen to read as follows:

(12) A policy issued to an association, or the trustee or trustees of & trust established, or participated in, by one or more associations, to insure association members subject to the following:

(A) Each association shall have (1) A minimum of two hundred insured members at the policy's date of issue;

(ii) Been organized and maintained in good faith for purposes princi-
pally other than that of obtaining insurance;

(iii) Been in active existence for at least two years; and
(iv) A constitution and by-laws which provide that:
(I) The

association holds regular meetings not less than annually to further purposes of the association;

(II) The association collects dues or solicits contributions from members; and

(IÍI). The members have voting privileges and representation on the governing board and committees.

(B) The premium for the policy shall be paid by the association or trustees either wholly from funds contributed by the association or by the insured individuals, or from funds contributed jointly by the association and insured individuals. A policy on which no part of the premium is to be derived from funds contributed by the insured individuals specifically for their insurance must insure all eligible individuals excluding

any

to whom evidence of individual insurability is not satisfactory to the insurer.

(C) The amounts of insurance under the policy shall be based upon some plan precluding individual selection either by the insured persons or by

association. However, such a plan may permit a number of selection's by the association, if the selections offered utilize a consistent pattern of grading the amounts of insurance so that the resulting pattern of coverage is reasonable. Furthermore, such plan may permite limited number of selections by members if the selections offered utilize a consistent pattern of grading the amounts of insurance for individual group members so that the resulting pattern of coverage is reasonable.

(D) Except as provided in paragraph five of subsection (a) of section three thousand two hundred twenty of this chapter, such policy shall provide for the payment of benefits to the person insured or to some beneficiary or beneficiaries, other than the association

any officials, representatives, trustees or agents thereof and shall provide for the issuance of a certificate to the persons insured or such beneficiary as evidence of such insurance.

TE) The premiums charged must be reasonable in relation to the benefits provided. EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

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(13) A policy issued to any organization, or the trustee or trustees of a trust established, or part icipated in, by one or more of such organizations to insure certain persons subject to the following:

(A) The organization must be:

(1) A bank, retailer or other issuer of a credit card, charge card or payment card which can be used to buy goods or services, and the policy must insure holders of that card;

(ii) A bank, Savings and loan' association, credit union, mutual fund, money market fund, stockbroker or other similar financial institution regulated by state or federal law, and the policy must insure the depositors, account holders or members of that institution.

(B) Except for a credit union where the premium shall be paid entirely from funds contributed by the credit union, the organization or organizations shall have minimum of two hundred insured persons at the policy's date of issue.

(C) The premium for the policy shall be paid by the organization or trustees either wholly from funds contributed by the organization or by the insured individuals, or from funds contributed jointly by the organization and insured individuals. A policy on which no part of the premium is to be derived from funds contributed by the insured individuals specifically for their insurance must cover all eligible individuals excluding any as to whom evidence of individual insurability is not satisfactory, to the insurer.

(D) The amounts of insurance under the policy shall be based upon some plan precluding, individual selection either by the insured persons or by the organization. However, such plan may pernit a number of selections by the organization if the selections offered utilize a consistent pattern of grading the amounts of insurance so that the resulting pattern of coverage is reasonable. Furthermore, such a plan may permita, limited number of selections by members if the selections offered utilize & consistent pattern of grading the amounts of insurance for individual group members so that the resulting pattern of coverage is reasonable.

(E) Except as provided in paragraph five of subsection (a) of section three thousand two hundred twenty of this chapter, such policy shall provide for the payment of benefits to the persons insured or to some beneficiary or beneficiaries other than the organization, or

any official, representatives, trustees or agents thereof, and shall provide for the issuance of a certificate to the persons insured or such beneficio ary, as evidence of such insurance.

(b) The premiums charged must be reasonable in relation to the benefits provided

(14). A policy issued to insure any other group approved by the superintendent upon a finding that:

(A) There is a common enterprise or economic or social affinity or relationship;

(B). The premiums charged are reasonable in relation to the benefits provided; and

(C) The issuance of the policy would result in economies of acquisition or administration, would be actuarially sound, and would not be contrary to the best interest of the public. The superintendent shall promulgate regulations setting forth any such groups that have been cepted as qualifying pursuant to this paragraph.

Subsection (c) of section four thousand two hundred sixteen of such law is amended to read as follows:

(c) (1) [The superintendent shall after consultation with the insurers licensed' to write life insurance in this state from time to time issue regulations, except with respect to group, life insurance defined in paragraphs three and nine of subsection (b) "hereof, and except with respect to group life insurance on the lives of employees employed or members resident in Canada, prescribing the minimum group life insurance premiums

to be charged for the first year of insurance for a group not previously insured as such by any insurer, based on examination of the experience of such insurers and on reasonable assumptions as to interest, mortality and expense. No such regulation or amendment thereto shall be promulgated except upon notice and after hearing to all insurers affected thereby.

(2)) No domestic, foreign or alien life insurance company shall be permitted to do business in this state if it hereafter issues, within or without this state, any policy of group life insurance [on which the premium shall be less than the premium prescribed in any applicable rego ulations promulgated by the superintendent] which on its issuance does

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not appear to be self-supporting on reasonable assumptions to interest, mortality and expense.

(2) Anything in this chapter to the contrary notwithstanding, any group life insurance policy issued delivered in this state may provide for readjustment of the rate of premium based on the experience thereunder, at the end of the first year or of any subsequent year of insurance thereunder, and such readjustment may be made retroactive only for such policy year. Any such rate readjustment shall be computed on a basis which is equitable to all group life insurance policies.

§ 9. Subsection (d) of section four thousand two hundred sixteen of such law is amended to read as follows:

(d) In the event a group life insurance policy hereafter issued for delivery in this state [to a group described in paragraph one, four five of subsection (b) hereof) permits a certificate holder' to convert to another type of life insurance within a specified time after the happening of an event, such certificate holder shall be notified of such privilege and its duration within fifteen days before or after the happening of the event, provided that if such notice be given more than fifteen days, but less than ninety days after the happening of such event, the time allowed for the exercise of such privilege of conversion shall be extended for [fifteen) forty-five days after the giving of such notice. If such notice be not given within ninety days after the happening of the event, the time allowed for the exercise of such conversion privilege shall expire at the end of such ninety days. Written notice by the employer] policyholder given to the certificate holder or mailed to the certificate holder at his last known address, or written notice by the insurer mailed to the certificate holder at the last address furnished to the insurer by the [employer) policyholder, shall be deemed full compliance with the provisions of this subsection for the giving of notice.

5 10. Subsection (f) of section four thousand two hundred sixteen of such law is amended to read as follows:

(f) Any policy of group life insurance except a policy, issued in accordance with paragraph three or eleven of subsection (b) hereof may include provisions for the payment by the insurer of life insurance benefits upon the death of the spouse of the insured employee or member his or her child dependent upon him or her for support and maintenance provided that insurance upon the life of the spouse shall not exceed (twenty thousand dollars or one-half of] the amount of insurance [on the life of the insured employee or member as provided in such policy, whichever is the lesser, ] for which such employee or member is insured at the time application is made for spouse coverage, nor shall the insurance upon the life of each dependent child so insured exceed four thousand dollars.,,An insựrer providing group life insurance for a spouse or dependent children shall require evidence of insurability sufficient to protect against substantial adverse selection.

$' 11. Section four thousand two hundred sixteen of such law is amended by adding a new subsection (h) to read as follows:

(h)(1) Any dividend hereafter apportioned on any participating group insurance policy, or any rate reduction hereafter made or continued any non-participating groụp policy, for the first, or any subsequent year of insurance under any such policy heretofore or hereafter issued under paragraph twelve, thirteen or fourteen of subsection (b) of this section, may be applied to reduce the policyholder's part of the cost of such policy, except that the excess, if any, of the insured's Aggregate contribution under the policy over the net cost (gross premium less dividends or rate reductions) of the insurance shall be applied at the discretion of the insurer either as a cash payment to the insured or to reduce the insured's premium, unless the insured assigns the dividend or rate reduction to the policyholder. If a dividend or rate reduction is payable upon termination of the policy the insurer shall either make payment to the insured or to the policyholder upon receipt of a certification from the policyholder that the dividend or rate rediction will be distributed by the policyholder to the insureds or applied to reduce the insured's premium.

(2) The provisions of paragraph one of this subsection shall apply to New York residents insured under a policy issued in any other jurisdiction to 8 group which is not of the type described in paragraphs one through eleven ot ub cti (b) of this section. EXPLANATION—Matter in italics is new; matter in brackets [ ] is old law

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