44-4508. Group policy, defined.

388 words·~2 min read·/ne/chapter-44/44-4508

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Group policy shall mean a long-term care insurance policy which is delivered or issued for delivery in this state and issued to:

(1)One or more employers or labor organizations or a trust or the trustees of a fund established by one or more employers or labor organizations, or a combination thereof, for employees or former employees, or a combination thereof, or for members or former members, or a combination thereof, of the labor organizations;

(2)Any professional, trade, or occupational association for its members or former or retired members, or a combination thereof, if such association:

(a)Is composed of individuals all of whom are or were actively engaged in the same profession, trade, or occupation; and

(b)Has been maintained in good faith for purposes other than obtaining insurance;

(3)An association or a trust or the trustee of a fund established, created, or maintained for the benefit of members of one or more associations. Prior to advertising, marketing, or offering such policy within this state, the association or associations or the insurer of the association or associations shall file evidence with the director that the association or associations have at the outset a minimum of one hundred members, have been organized and maintained in good faith for purposes other than that of obtaining insurance, have been in active existence for at least one year, and have a constitution and bylaws which provide that

(a)the association or associations hold regular meetings not less than annually to further purposes of the members,

(b)except for credit unions, the association or associations collect dues or solicit contributions from members, and

(c)the members have voting privileges and representation on the governing board and committees. Thirty days after such filing, the association or associations shall be deemed to satisfy such organizational requirements unless the director makes a finding that the association or associations do not satisfy those organizational requirements; or

(4)A group other than as described in subdivision (1), (2), or

(3)of this section, subject to a finding by the director that:

(a)The issuance of the group policy is not contrary to the best interest of the public;

(b)The issuance of the group policy would result in economies of acquisition or administration; and

(c)The benefits are reasonable in relation to the premiums charged.