CHAPTER 407-B GROUP MARKETING OF MOTOR VEHICLE INSURANCE
Section 407-B:3
407-B:3 General Conditions. –
Group motor vehicle insurance may be issued in this state provided the following conditions are complied with:
I. Mandatory participation in the group plan shall not be required as a condition of employment, nor shall any member not participating in the plan be coerced or discriminated against.
II. The insurer and the group insured must accept all members or employees who are eligible and wish to participate in the plan.
III. Such a group plan shall include a provision that any member of the group shall have the right to convert his group policy to an individual standard policy of insurance in the same company as offered by the insurer to the non-group insureds upon termination of his connection with the group extending to him the same limits of coverage.
IV. To qualify to write the group insurance herein defined, an insurer must also be engaged in the business of writing the type of coverage offered for insureds other than group and may not be organized solely for the purpose of furnishing coverage to such groups.
V. Each member of the group must be issued the same form of policy as approved for issue in this state varying only as to the amounts of insurance and limits of liability.
VI. Insurance must be provided by individual policies to each member of the group under an agreement whereby the premiums on such policies shall be paid to the insurer periodically by the group with or without payroll deductions.
VII. An insurer may not cancel the insurance of an individual member of the group except for the non-payment of premium by such member or unless the insurance for the entire group is cancelled. In such cases notice of cancellation as provided in like non-group policies shall be given to each member.
VIII. The plan shall provide that only those motor vehicles owned by members of the group or their spouses or children, jointly or severally, shall be eligible for coverage.
IX. All individuals considered "Eligible Members" as defined herein shall be provided with this motor vehicle group insurance plan if they wish it, provided one family member holds a valid license to operate a motor vehicle.