Page:United States Statutes at Large Volume 74.djvu/356

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[74 Stat. 316]
[74 Stat. 316]
PUBLIC LAW 86-000—MMMM. DD, 1960

PUBLIC LAW 86.579-JULY 5, 1960

316

Minimum m e m b e r s h i p requirement. P o l i c y selection and amount, limitation.

Extension coverage.

of

Payment of premiums.

Maximum ance.

insur-

Conversion rights.

Exception.

[74

ST A T.

for their insurance. A policy on which any part or all of the premium is to be derived from funds contributed by the insured members or employees specifically for their insurance may be placed in force only if at least 60 per centum of the then eligible members or employees or a minimum of four hundred members or employees, whichever is less, excluding any as to whom evidence of individual insurability is not satisfactory to the insurer, elect to make the required contributions. A policy on which no part of the premium is to be derived from funds contributed by the insured members or employees specifically for their insurance must insure all eligible members or employees^ or all except any as to whom evidence of individual insurability is not satisfactory to the insurer. "(c) The policy must cover at least twenty-five members or employees at date of issuance. " (d) The amounts of insurance under the policy must be based on some plan precluding individual selection eitner by the members or employees, or by the association. No policy may be issued which provides term insurance on any association member or employee which, together with any other term insurance under any group life insurance policy or policies, exceeds $20,000, unless 150 per centum of the annual compensation of such person exceeds $20,000, in which event all such term insurance shall not exceed $40,000, or 150 per centum of such annual compensation, whichever is less. "(7) Any policy issued pursuant to this section, except a policy issued to a creditor pursuant to subsection (2) hereof, may be extended to insure the spouses and minor children of insured persons, or any class or classes thereof, subject to the following requirements: " (a) The premiums for the insurance shall be paid by the policyholder either from the policyholder's funds or from funds contributed by the insured person, or from both. If any part of the premium is to be derived from funds contributed by the insured persons, the insurance with respect to spouses and children may be placed in force only if at least 75 per centum of the then eligible employees or association members, excluding any as to whose family members evidence of insurability is not satisfactory to the insurer, elect to make the required contribution. If no part of the premium is to be derived from funds contributed by the insured persons, all such eligible employees or association members, excluding any as to whose family members evidence of insurability is not satisfactory to the insurer, must be insured with respect to their spouses and children. "(b) 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, and shall not exceed with respect to any spouse or child, 50 per centum of the insurance on the life of such insured person. "(c) Upon termination of the insurance with respect to the spouse of any insured person by reason of such person^s termination of employment or membership or death, the spouse insured pursuant to this section shall have the same conversion rights as to the insurance on his or her life as is provided for the insured person under section 11. " (d) Notwithstanding the provisions of section 11, only one certificate need be issued for delivery to an insured person if a statement concerning any dependent's coverage is included in such certificate." Approved July 5, 1960.