§36-4101. Classes of policies permitted - Eligibility - Premiums -
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/ok/title-36-insurance/36-4101·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Number insured - Amount of insurance.
No policy of group life insurance shall be delivered in this state unless it conforms to one of the following descriptions:
1. A policy issued to an employer, or to the trustees of a fund established by an employer, which employer or trustees shall be deemed the policyholder, to insure employees of the employer for the benefit of persons other than the employer, subject to the following requirements:
a. The employees eligible for insurance under the policy
shall be all of the employees of the employer, or all
of any class or classes thereof determined by
conditions pertaining to their employment. The policy
may provide that the term "employees" shall include
the employees of one or more subsidiary corporations,
and the employees, individual proprietors and partners
of one or more affiliated corporations, proprietors or
partnerships if the business of the employer and of
such affiliated corporations, proprietors or
partnerships is under common control through stock
ownership or contract, or otherwise. The policy may
provide that the term "employees" shall include the
individual proprietor or partners if the employer is
an individual proprietor or a partnership. The policy
may provide that the term "employees" shall include
retired employees. No director of a corporate
employer shall be eligible for insurance under the
policy unless such a person is otherwise eligible as a
bona fide employee of the corporation by performing
services other than the usual duties of a director.
No individual proprietor or partner shall be eligible
for insurance under the policy unless he is actively
engaged in and devotes a substantial part of his time
to the conduct of the business of the proprietor or
partnership. The policy may provide that the term
"employees" shall include the trustees or their
employees, or both, if their duties are principally
connected with such trusteeship. A policy issued to
insure the employees of a public body may provide that
the term "employee" shall include elected or appointed
officials.
b. The premium for the policy shall be paid by the
policyholder, either wholly from the employer's funds
or funds contributed by him, or partly from such funds
and partly from funds contributed by the insured
employees, or from funds contributed wholly by the
insured employees. A policy on which no part of the
premium is to be derived from funds contributed by the
insured employees must insure all eligible employees,
or all except any as to whom evidence of insurability
is not satisfactory to the insurer.
c. The amounts of insurance under the policy must be
based upon some plan precluding individual selection
either by the employees or by the employer or trustee;
2. A policy issued to a creditor, who shall be deemed to be the policyholder, to insure debtors of the creditor. Credit unions and associations formed for the purpose of making loans to their members shall be deemed to be creditors within the meaning of this section. Policies issued to a creditor to insure debtors of the creditor are subject to the following requirements:
a. The debtors eligible for insurance under the policy
shall be all of the debtors of the creditor or all of
any class or classes thereof determined by conditions
pertaining to the indebtedness or to the purchase
giving rise to the indebtedness. The policy may
provide that the term "debtors" shall include the
debtors of one or more subsidiary corporations, and
the debtors of one or more affiliated corporations,
proprietors or partnerships if the business of the
policyholder and of such affiliated corporations,
proprietors or partnerships is under common control
through stock ownership, contract or otherwise.
b. The premium for the policy shall be paid by the
policyholder, either from the creditor's funds, or
from charges collected from the insured debtors, or
from both. A policy on which part or all of the
premium is to be derived from the collection from the
insured debtors of identifiable charges not required
of uninsured debtors shall not include, in the class
or classes of debtors eligible for insurance, debtors
under obligation outstanding at its date of issue
without evidence of individual insurability unless at
least seventy-five percent (75%) of the then eligible
debtors elect to pay the required charges. A policy
on which no part of the premium is to be derived from
the collection of such identifiable charges must
insure all eligible debtors, or all except any as to
whom evidence of individual insurability is not
satisfactory to the insurer.
c. The policy may be issued only if the group of eligible
debtors is then receiving new entrants at the rate of
at least one hundred persons yearly, or may reasonably
be expected to receive at least one hundred new
entrants during the first policy year, and only if the
policy reserves to the insurer the right to require
evidence of individual insurability if less than
seventy-five percent (75%) of the new entrants become
insured.
d. The amount of insurance on the life of any debtor
shall at no time exceed the amount owed by him which
is repayable to the creditor, or One Hundred Thousand
Dollars ($100,000.00), whichever is less, provided
further, no company licensed to do business in this
state shall issue in excess of One Hundred Thousand
Dollars ($100,000.00) group credit life insurance on
one individual in the State of Oklahoma.
e. The insurance shall be payable to the policyholder.
Such payment shall reduce or extinguish the unpaid
indebtedness of the debtor to the extent of such
payment;
3. 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:
a. 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.
b. 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, or from funds contributed wholly by
the insured members. A policy on which no part of the
premium is to be derived from funds contributed by the
insured members specifically for their insurance must
insure all eligible members or all except any as to
whom evidence of individual insurability is not
satisfactory to the insurer.
c. The amount of insurance under the policy must be based
upon some plan precluding individual selection either
by the members or by the union;
4. A policy issued to the trustees of a fund established in this state by two or more employers in the same industry, provided a majority of the employees to be insured of each employer are located within this state, or to the trustees of a fund established by one or more labor unions, or by one or more employers in the same industry and one or more labor unions or by one or more employers and one or more labor unions whose members are in the same or related occupation or trades, or by an association of persons,
licensed by the State of Oklahoma to engage in a recognized profession, which trustees shall be deemed the policyholder to insure employees of the employers or members of the unions or members of an association of persons, licensed by the State of Oklahoma to engage in a recognized profession, for the benefit of persons other than the employers or the unions, or the association of persons, licensed by the State of Oklahoma to engage in a recognized profession, subject to the following requirements:
a. The persons eligible for insurance shall be all of the
employees of the employers or all of the members of
the union, or all the members of an association of
persons, licensed by the State of Oklahoma to engage
in a recognized profession, or all of any class or
classes thereof determined by conditions pertaining to
their employment, or to membership in the unions, or
to both, or pertaining to membership in the
association of persons, licensed by the State of
Oklahoma to engage in a recognized profession. The
policy may provide that the term "employees" shall
include the individual proprietor or partners if any
employer is an individual proprietor or a partnership.
The policy may provide that the term "employees" shall
include retired employees. No director of a corporate
employer shall be eligible for insurance under the
policy unless such person is otherwise eligible as a
bona fide employee of the corporation by performing
services other than the usual duties of a director.
No individual proprietor or a partner shall be
eligible for insurance under the policy unless he is
actively engaged in and devotes a substantial part of
his time to the conduct of the business of the
proprietor or partnership. The policy may provide
that the term "employees" shall include the trustees
or their employees, or both if their duties are
principally connected with such trusteeship, and that
the term "members of an association" shall include
employees of members.
b. The premium for the policy shall be paid by the
trustees wholly from funds contributed by the employer
or employers of the insured persons, or by the union
or unions, or by both, or by an association of
persons, licensed by the State of Oklahoma to engage
in a recognized profession, or from funds contributed
wholly or in part by the insured persons. A policy on
which no part of the premium is to be derived from
funds contributed by the insured persons specifically
for their insurance must insure all eligible persons,
or all except any as to whom evidence of individual
insurability is not satisfactory to the insurer.
c. The policy must cover at date of issue at least one
hundred persons; and if the fund is established by the
members of an association of employers the policy may
be issued only if
(a)either
(i)the participating
employers constitute at date of issue at least sixty
percent (60%) of those employer members whose
employees are not already covered by group life
insurance or
(ii)the total number of persons covered
at date of issue exceeds six hundred; and
(b)the
policy shall not require that if a participating
employer discontinues membership in the association,
the insurance of his employees shall cease solely by
reason of such discontinuance.
d. The amounts of insurance under the policy must be
based upon some plan precluding individual selection
either by the insured persons or by the policyholder,
employers, or unions;
5. A policy issued to any nonprofit industrial association to insure the executives of employer members of a nonprofit industrial association, which is now and has been actively functioning for a period of not less than ten
(10)years, such policy to be issued to such association which shall be deemed to be the employer for the purposes of this article, or to the association and executives of such employer members jointly and insuring only all of such executives for amounts of insurance based upon some plan which will preclude individual selection, for the benefit of persons other than such association, and the premium on which shall be paid by the employer members or the employer members and the executives of such employer members jointly;
6. A policy issued to a credit union which shall be deemed the policyholder, to insure eligible members for the benefit of someone other than the credit union or its officials and subject to the following requirements:
a. The members eligible for insurance under the policy
shall be all the members of the credit union or all of
any class or classes thereof.
b. The premiums for the policy shall be paid by the
policyholder, either wholly from the credit union's
funds, or partly from such funds and partly from funds
contributed by the insured members specifically for
their insurance. A policy on which no part of the
premium is to be derived from funds contributed by the
insured members specifically for their insurance must
insure all eligible members or all except any as to
whom evidence of individual insurability is not
satisfactory to the insurer.
c. The amount of insurance under the policy may be based
on the amount of the member's savings in the credit
union or upon some other plan precluding individual
selection either by the members or by the credit
union;
7. A policy issued to a charitable, benevolent, educational or religious institution, or their agencies, to insure the members thereof for the purpose set forth in subsection D of Section 3604 of this title;
8. A policy issued to an alumni association of an institution of higher education accredited by the Oklahoma State Regents for Higher Education, to insure the members thereof for the purpose set forth in subsection E of Section 3604 of this title;
9. A policy to an association, which has a constitution and bylaws and which has been organized and is maintained in good faith for purposes other than that of obtaining insurance, that insures at least ten members, employees, or employees of members of the association or its officers or trustees. The term “employees” as used in this paragraph shall include retired employees.
“Association” means, with respect to life insurance coverage offered, an association which:
a. has been actively in existence for at least five
years,
b. has been formed and maintained in good faith for
purposes other than obtaining insurance,
c. does not condition membership in the association on
any health status-related factor relating to an
individual, including an employee of an employer or a
dependent of an employee or association member,
d. makes life insurance coverage offered through the
association available to all members regardless of any
health status-related factor relating to such member
or individuals eligible for coverage through a member,
e. does not make life insurance coverage offered through
the association available other than in connection
with a member of the association, and
f. meets such additional requirements as may be imposed
under state law;
10. A policy issued to cover any other group subject to the following requirements:
a. no such group life insurance policy shall be delivered
in this state unless the Commissioner of Insurance
finds that:
(1)the issuance of such group policy is not contrary
to the best interest of the public,
the issuance of the group policy would result in
economies of acquisition or administration, and
(3)the benefits are reasonable in relation to the
premiums charged, and
b. the premium for the policy shall be paid either from
the policyholder’s funds or from funds contributed by
the covered person or from both; or
11. A policy issued to cover any other substantially similar group which, in the discretion of the Insurance Commissioner, may be subject to the issuance of a group life policy or contract. Added by Laws 1957, p. 378, § 4101, operative July 1, 1957. Amended by Laws 1961, p. 274, § 1, emerg. eff. June 28, 1961; Laws 1968, c. 94, § 1, emerg. eff. April 1, 1968; Laws 1974, c. 92, § 1, emerg. eff. April 24, 1974; Laws 1975, c. 82, § 1, emerg. eff. April 25, 1975; Laws 1980, c. 23, § 1, emerg. eff.
March 24, 1980; Laws 1982, c. 146, § 1, operative Oct. 1, 1982; Laws 1991, c. 223, § 2, emerg. eff. May 23, 1991; Laws 2000, c. 353, § 42, eff. Nov. 1, 2000; Laws 2005, c. 129, § 15, eff. Nov. 1, 2005; Laws 2007, c. 125, § 20, eff. July 1, 2007.