Md. Code Regs. 31.09.01.04

Current through Register Vol. 51, No. 24, December 2, 2024

Section 31.09.01.04 - Permissible Cases

A. Evidence of Insurability. The insurer may require evidence of insurability on individual lives.

B. Contributory and Noncontributory. Premiums for the policies may be paid by the sponsor or by the employee or member insured, or partly by the sponsor and partly by the employee or member insured.

C. Employer Sponsored Case.

(1) The class or classes of persons to be insured initially shall consist of not less than two employees. An employer sponsored case which meets the qualifications for a group life insurance policy under Insurance Article, Title 17, Annotated Code of Maryland, as amended to date, and under which more than 32 employees are initially eligible, may not be written on a wholesale life insurance basis. The term "employees" may include:

(a) Directors and officers, if the employer is a corporation;

(b) An individual proprietor or partner, if the employer is an individual proprietor or a partnership;

(c) Elected or appointed officials, if the employer is a government unit, department, or agency; and

(d) Retired employees.

(2) For purposes of this chapter, employees of affiliated corporations, proprietorships, or partnerships under common control may be regarded as employees of the employer.

D. Other Sponsors. If a sponsor is other than an employer, the case may be written only if the persons, excluding dependents, to be initially insured shall number at least five, and if the number of persons, excluding dependents, initially eligible exceeds 32, only if the case does not qualify for a group life insurance policy under Insurance Article, Title 17, Annotated Code of Maryland, as amended to date.

Md. Code Regs. 31.09.01.04