408:14 Group Life Insurance; Definitions. –
No policy or certificate of group life insurance shall be issued or delivered in this state unless the policy is issued to a group that conforms to one of the following descriptions:
I. 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, 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" may include retired employees, former employees, and directors of a corporate employer. 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 from the employer's funds, or from funds contributed by the insured employees, or from both. A policy on which no part of the premium is to be derived from funds contributed by the insured employees shall insure all eligible employees, or all except any as to whom evidence of individual insurability is not satisfactory to the insurer.
II. A policy issued to a creditor or its parent holding company or to the trustees of a fund established by one or more creditors, which creditor or trustees shall be deemed the policyholder, to insure debtors of the creditor or creditors, subject to the following requirements:
(a) The debtors eligible for insurance under the policy shall be all the debtors of the creditor or creditors or all of any class or classes thereof. The policy may provide that the term "debtors" shall include:
(1) Borrowers of money or purchasers or lessees of goods, services, or property for which payment is arranged through a credit transaction;
(2) The debtors of one or more subsidiary corporations; and
(3) 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 or creditors' funds, or from charges collected from the insured debtors, or from both. A policy on which no part of the premium is to be derived from funds contributed by insured debtors specifically for their insurance shall insure all eligible debtors, or all except any as to whom evidence of individual insurability is not satisfactory to the insurer.
(c) The amount of insurance on the life of any debtor shall at no time exceed the greater of the scheduled or actual amount of unpaid indebtedness to the creditor.
(d) The insurance shall be payable to the policyholder. Such payment shall reduce or extinguish the unpaid indebtedness of the debtor to the extent of the payment and any excess of the insurance shall be payable to the estate of the insured.
(e) Notwithstanding the provisions of subparagraphs (a)-(d), insurance on agricultural credit transaction commitments may be written up to the amount of the loan commitment on a non-decreasing or level term plan. Insurance on educational credit transaction commitments may be written up to the amount of the loan commitment less the amount of any repayments made on the loan,
III. A policy issued to a labor union or similar employee organization, which shall be deemed the policyholder, to insure members of such union or organization 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 organization, or all of any class or classes thereof determined by conditions pertaining to their employment, or to membership in the union or organization, or both.
(b) The premium for the policy shall be paid by the policyholder, either wholly from the union's or organization's funds or partly from such funds and partly from funds contributed by the insured members specifically for the 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 shall insure all eligible members, or all except any as to whom evidence of individual insurability is not satisfactory to the insurer.
IV. A policy issued to the trustees of a fund established by 2 or more employers in the same industry or by one or more labor unions or similar employee organizations, which trustees shall be deemed the policyholder, to insure employees of the employers or members of the union(s) or organizations for the benefit of persons other than the employers or the unions, 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 unions, or all of any class or classes thereof determined by conditions pertaining to their employment, or to membership in the unions, or to both. The policy may provide that the term "employees" shall include the individual proprietor or partners if an employer is an individual proprietor or a 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. The policy may provide that the term "employees" shall include retired employees, former employees, and directors of a corporate employer.
(b) The premiums for the policy shall be paid by the policyholder either wholly from funds contributed by the employers of the insured persons or partly from such funds and partly from funds contributed by the insured employees. A policy on which no part of the premium is to be derived from funds contributed by the insured members specifically for their insurance shall insure all eligible members, or all except any as to whom evidence of individual insurability is not satisfactory to the insurer.
V. A policy issued to a credit union or to the trustees of a fund established by one or more credit unions, which credit union or trustees shall be deemed the policyholder to insure members of such credit union or credit unions for the benefit of persons other than the credit union or credit unions or trustees or any of their officials, subject to the following requirements:
(a) The members eligible for insurance shall be all of the members of the credit union or credit unions, or all of any class or classes thereof determined by conditions pertaining to membership in the credit union or credit unions.
(b) The premium for the policy shall be paid by the policyholder, either wholly from the funds of the credit union or credit unions, or partly from such funds and partly from funds contributed by the insured members specifically for their insurance, or wholly 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 shall insure all eligible members, or all except any as to whom evidence of individual insurability is not satisfactory to the insurer.
VI. A policy issued to an association or trust of public employees formed for purposes other than obtaining insurance, which association shall be deemed the policyholder, to insure members of such association for the benefit of persons other than the association or any of its officials, subject to the following requirements:
(a) The persons eligible for insurance under the policy shall be all of the members of the association, or all of any class or classes thereof determined by conditions pertaining to their employment, or to membership in the association, or both.
(b) The premium for the policy shall be paid by the policyholder, either from the association's own funds, or charges collected from the insured members specifically for insurance, or from both. A policy on which no part of the premium is to be derived from funds contributed by the insured members specifically for their insurance shall insure all eligible members, or all except any as to whom evidence of individual insurability is not satisfactory to the insurer.
(c) As used herein, "public employees" means employees of the United States government, or of any state, county, municipality, or political subdivision, or instrumentality of any of them.
VII. (a) A policy or certificate issued to a resident of this state under a group life insurance policy may be issued to a group other than one described in paragraphs I through VI provided the commissioner finds that:
(1) The issuance or delivery of the policy or certificate is not contrary to the best interest of the public.
(2) The issuance or delivery of the policy or certificate would result in economies of acquisition or administration.
(3) The benefits are reasonable in relation to the premiums charged.
(4) The premium for the policy shall be paid either from the policyholder's funds or from funds contributed by the covered persons, or from both, and shall insure all eligible covered persons, or all except any as to whom evidence of individual insurability is not satisfactory to the insurer.
(b) If the commissioner has approved a discretionary group, it shall be the responsibility of the insurer to verify that the group continues to meet the discretionary group requirements.
(c) Any filing made in relation to a discretionary group life insurance policy or certificate that was approved by the department prior to July 1, 2009 shall be deemed to meet the requirements of this paragraph, unless the commissioner acts at any time to revoke such approval after a hearing pursuant to RSA 400-A:17.
(d) The commissioner may, after a hearing held pursuant to RSA 400-A:17, withdraw approval of a discretionary group if the commissioner finds such a group no longer meets the requirement of this paragraph.
VIII. Notwithstanding the above, any such policy of group life insurance issued pursuant to paragraphs I-VII may be extended to provide group life insurance for an employee, or other member of the group, his or her spouse, child or children, or other dependents.