Section 4216. Group life insurance; premium requirements; notice of conversion; filing of compensation

(a) (1) In this chapter:    (A) "Group life insurance" means that form of life insurance  covering
  any  one  of  the  groups  specified  in subsection (b) hereof, which is
  written under  a  policy  issued  to  the  policyholder  as  hereinafter
  defined, and which in all other respects conforms to the requirements of
  subsection (b) hereof.
    (B)  "Certificate  holder,"  as  used  in  relation  to  a  group life
  insurance policy, means the person to whom a certificate evidencing such
  insurance is issued under any such policy, as hereinafter provided.
    (2)  In  this  section,  for  the  purposes  of  insurance  hereunder:
  "employees"  may  be  deemed  to  include  (i)  the  officers, managers,
  employees and retired employees of the employer  and  of  subsidiary  or
  affiliated  corporations  of  a  corporate  employer, and the individual
  proprietors, partners, employees and  retired  employees  of  affiliated
  individuals   and   firms  controlled  by  the  employer  through  stock
  ownership, contract or otherwise;  (ii)  the  individual  proprietor  or
  partner  if  the  employer is an individual proprietor or a partnership;
  (iii) as used in paragraph one of subsection (b) hereof,  the  directors
  of  the  employer  and  of  subsidiary  or  affiliated corporations of a
  corporate employer; and (iv) as used in  paragraphs  four  and  five  of
  subsection  (b)  hereof,  the  trustees  or their employees, or both, if
  their duties are principally connected with such trusteeship.
    (b) Any life insurance company authorized to do business in this state
  may deliver in this state policies  of  group  life  insurance  only  as
  follows:
    (1)  A  policy  issued to an employer or to a trustee or trustees of a
  fund established by an employer, which employer  or  trustees  shall  be
  deemed the policyholder, insuring with or without evidence of individual
  insurability  satisfactory  to  the insurer, employees of such employer,
  and insuring, except as hereinafter provided, all of such  employees  or
  all  of any class or classes thereof determined by conditions pertaining
  to the employment, or by a combination of such conditions and conditions
  pertaining to  the  family  status  of  the  employee,  for  amounts  of
  insurance  on  each  person  insured  based  upon  some  plan which will
  preclude individual selection. However, such a plan may permit a limited
  number of selections by employees if the selections  offered  utilize  a
  consistent  pattern  of  grading the amounts of insurance for individual
  group members so that the resulting pattern of coverage  is  reasonable.
  The  premium  for  the  policy shall be paid by the policyholder, either
  wholly from the employer's funds or funds contributed  by  him  or  from
  funds  contributed  by  the insured employees, or from funds contributed
  jointly by the employer and employees. If all or part of the premium  is
  to  be  derived  from  funds  contributed by the insured employees, such
  policy must  insure  not  less  than  fifty  percent  of  such  eligible
  employees  or,  if  less,  fifty  or  more  of such employees. Except as
  provided  in  subsection  (b)  of  section  four  thousand  two  hundred
  thirty-one  of  this  article and in paragraph five of subsection (a) of
  section three thousand two hundred twenty of this chapter,  such  policy
  shall  provide  for  payment  of  all benefits thereunder, to the person
  insured or to some beneficiary or beneficiaries other than the employer,
  and shall provide for the issuance of a certificate to the  policyholder
  for  delivery  to the person insured or to such beneficiary, as evidence
  of such insurance.
    (2) A policy issued to a  labor  union,  which  shall  be  deemed  the
  policyholder   insuring,   with   or   without  evidence  of  individual
  insurability satisfactory to the  insurer,  not  less  than  twenty-five
  members  of such union, and insuring, except as hereinafter provided all

  of the members of such union or all of  any  class  or  classes  thereof
  determined by conditions pertaining to their employment or membership in
  the  union,  or both, and who are actively engaged in their occupations,
  for  amounts  of  insurance  on each person insured based upon some plan
  which will preclude individual  selection.  However,  such  a  plan  may
  permit  a  limited  number  of  selections  by members if the selections
  offered utilize a consistent pattern of grading the amounts of insurance
  for individual group members so that the resulting pattern  of  coverage
  is  reasonable.  The premium on such policy may be paid by the union, by
  the members, or by the union and its members jointly. If the premium  is
  paid  by the members or by the union and its members jointly such policy
  must insure not less than fifty percent of such eligible members or,  if
  less,  fifty  or  more  of such members. Except as provided in paragraph
  five of subsection (a) of section three thousand two hundred  twenty  of
  this  chapter,  such policy shall provide for the payment of benefits to
  the person insured or to some beneficiary or beneficiaries,  other  than
  the  union or any of its officials, representatives or agents, and shall
  provide for the issuance of a certificate to the union for  delivery  to
  the  person  insured  or  to  such  beneficiary,  as  evidence  of  such
  insurance. Any such policy may vary from the foregoing requirements,  as
  follows:
    (A)  if  the policy is cancellable at the option of the insurer at the
  end of any policy year and if the basis of premium rates may be  changed
  by  the insurer at the beginning of any policy year, all members of such
  labor union may be insured thereunder;
    (B) if and when members of such union apply for and pay for additional
  amounts of insurance, a smaller percentage of such  members  than  fifty
  percent  may,  with  evidence of individual insurability satisfactory to
  the insurer, be insured thereunder for such additional amounts.
    (3) (A) A policy issued to a creditor or vendor, or to  a  trustee  or
  agent  designated  by  two or more creditors or vendors, which creditor,
  vendor, trustee, or agent shall be deemed the  policyholder,  except  as
  hereinafter provided.
    (B) The policy shall insure all of the members, but may exclude any as
  to  whom  evidence of individual insurability is not satisfactory to the
  insurer, of a group of debtors or vendees, defined as follows:
    (i) all of the borrowers, or borrowers and guarantors of borrowers, or
  intended borrowers (under a program for defraying the cost of attendance
  of a student at a college or university or at an elementary or secondary
  school providing education required for minors, which  program  includes
  provision  for  immediate periodic payments by the parent or guardian of
  such student and a loan commitment to such  parent  and  guardian  by  a
  financial  institution, or by or on behalf of a college or university or
  such an elementary or secondary school to defray the cost of  attendance
  at  such  college  or  university  or  elementary or secondary school in
  excess of the accumulated periodic payments by the parent  or  guardian)
  from   one  financial  institution  and  its  subsidiary  or  affiliated
  companies, or from two or more creditors or vendors so designating  such
  trustee, trustees or agent, or
    (ii)  all  of  the  purchasers  of  securities,  merchandise  or other
  property from one vendor, or from two or  more  vendors  so  designating
  such trustee or agent, or
    (iii)  all  of  any  class  or  classes  of such debtors or purchasers
  determined by conditions pertaining  to  the  type  of  indebtedness  or
  purchase.
    (C)  The  policy  may specify the ages to which the insurance provided
  shall be limited, provided however that if the insurance terminates at a

  particular age, the age at which  it  terminates  shall  be  prominently
  displayed on the application for insurance.
    (D)  If  the  agreement  provides  for  repayment  in instalments, the
  insurance may be continued for the duration of the debt over a period of
  not more than  thirty-five  years  from  the  date  the  debt  is  first
  incurred;  otherwise  the insurance may be continued for a period not in
  excess of eighteen months except that such insurance  may  be  continued
  for  an  additional  period  not  exceeding  six  months  in the case of
  default, extension or recasting of the loan.
    (E) Notwithstanding anything in this paragraph to the contrary,
    (i) the insurance of borrowers, who incur  indebtedness  arising  from
  the  granting  of  policy  loans pursuant to policy provisions therefor,
  provided under a policy issued to the  insurance  company  granting  the
  policy loan, may be continued for the duration of the indebtedness,
    (ii)  under  a  plan  approved  by the superintendent the insurance of
  debtors with  respect  to  an  agreement  which  does  not  provide  for
  repayment  in  instalments  may  be  continued  for  the duration of the
  indebtedness  but  not  more  than  seven  years  from  the   date   the
  indebtedness is incurred, and
    (iii)  the  insurance  of persons who are tenants or shareholders of a
  mutual  or  other  housing  corporation  (organized  pursuant   to   the
  provisions  of  the  private  housing  finance law and regulated by such
  statute as to rent, dividends and profits) under a  policy  issued  with
  identifiable charges or fixed amounts of premiums to such corporation or
  to  a  trustee  or  trustees  or  agent  designated  by one or more such
  corporations may be continued for the term of the  tenant's  lease  with
  such  corporation  or  thirty-six  months  or  whichever  is the greater
  period, and the amount of insurance with respect to any  person  insured
  under  such  policy may be a fixed amount not greater than the lesser of
  fifty-five thousand dollars or an amount equal to thirty-six  times  the
  monthly instalments due under such lease.
    (F)  The  benefits of any policy authorized under this paragraph shall
  be payable to the policyholder; but the amount of any  benefit  received
  by  the policyholder thereunder not in excess of the actual indebtedness
  shall be applied by the policyholder to the discharge of any  obligation
  of   the   person  insured,  or  his  personal  representative,  to  the
  policyholder, creditor or his assignee and the  amount  of  any  benefit
  received  by  the  policyholder  thereunder  in  excess  of  the  actual
  indebtedness shall be payable to a beneficiary named by the  debtor  or,
  if  none, then either to the estate of the debtor or under the provision
  of a facility of payment clause.
    (G) No such group shall be eligible for insurance hereunder unless the
  new entrants to such group number at least twenty-five persons yearly.
    (H) The premium for the policy shall  be  paid  by  the  policyholder,
  either  from the creditor's or vendor's funds, or from charges collected
  from the insured debtors or purchasers, or from both. A policy on  which
  all  or  part  of the premium to be derived from the collection from the
  insured debtors or purchasers of identifiable charges  not  required  of
  uninsured  debtors  or  purchasers  may  be  issued  only  if the policy
  reserves to the insurer the right  to  require  evidence  of  individual
  insurability  if  less  than seventy-five percent of the new entrants in
  any year become insured and provided that such policy shall not include,
  in the class or classes of debtors or purchasers eligible for insurance,
  debtors or purchasers under obligations outstanding at its date of issue
  without evidence of individual insurability unless at least seventy-five
  percent of the then eligible debtors or  purchasers  elect  to  pay  the
  required charges.

    (I)  The  policy may be issued to an assignee to whom such creditor or
  vendor has transferred all of its  right,  title  and  interest  to  the
  unpaid  indebtedness,  or  to  the unpaid purchase price, under all such
  agreements made by it.
    (J) The amount of insurance on any person insured under a policy shall
  not at any time exceed:
    (i)  in  all  cases  except  as  hereinafter  provided  the  lesser of
  fifty-five thousand dollars and the amount of unpaid indebtedness or the
  amount of the purchase price unpaid by such person;
    (ii) in the case of a loan  commitment  pursuant  to  the  hereinabove
  program  for  defraying the cost of attendance of a student at a college
  or university or at such an elementary or secondary school,  the  lesser
  of  fifty-five  thousand  dollars and the total of the unpaid balance of
  the scheduled periodic payments whether due or not due and the amount of
  any outstanding loan commitment pursuant to such a program; or
    (iii) in the case of a transaction secured by a real estate  mortgage,
  the  lesser  of  the  sum of two hundred twenty thousand dollars and the
  amount of the indebtedness so secured.
    (iv) in the case of indebtedness arising from a  credit  card  account
  where  there  is no specific charge for insurance, the lesser of the sum
  of one hundred thousand dollars or the amount of unpaid indebtedness.
    (K) (i) With respect to loans made by production  credit  associations
  organized  pursuant to the federal Farm Credit Act of 1933, 12 U.S.C. §§
  1131c - 1138c, and with respect to loans made by a bank,  trust  company
  or  industrial  bank  to  a borrower engaged in the business of farming,
  crop production or the raising,  breeding,  fattening  or  marketing  of
  livestock  for  the  purposes of such business and other requirements of
  the borrower, the amount of insurance may exceed the unpaid indebtedness
  and shall not be limited as to amount except that  the  insurance  shall
  not exceed the greater of the loan commitment or the outstanding balance
  of  the  loan  at  the inception of the period for which the borrower is
  insured.
    (ii) With respect to loans made  by  Federal  Land  Banks  established
  pursuant  to  an  Act  of  Congress  of  the  United States entitled the
  "Federal Farm Loan Act", approved  July  seventeenth,  nineteen  hundred
  sixteen, as amended, the amount of insurance on any person insured under
  the  policy  shall  not  at  any  time  exceed  the amount of the unpaid
  indebtedness at the inception of the period for which premiums are paid,
  but shall not otherwise be limited as to amount.
    (L) The superintendent shall prescribe from time to  time  regulations
  determining  the procedures, terms and conditions applicable to a policy
  issued pursuant to this paragraph to the trustee or agent designated  by
  two or more creditors or vendors.
    (M)  Each  insurer  shall  file  with  the superintendent its forms of
  policies, certificate statements and applications pertaining  to  credit
  insurance  together  with  its  premium rates for such insurance and the
  same shall be subject to his  approval.  The  superintendent  shall  not
  approve  any  such  forms  if  the  premium  charged  is unreasonable in
  relation to the benefits provided.
    (N) For the purposes of this  paragraph:  (i)  "creditor"  includes  a
  lessor  of  real or personal property, (ii) "borrower" includes a lessee
  of real or personal property, and (iii) "indebtedness" includes  rentals
  payable under the lease of real or personal property.
    (4)  A policy issued to a trustee or trustees of a fund established or
  participated in by two or more employers or by one or more labor unions,
  or by one or more employers and one or more labor unions, which  trustee
  or trustees shall be deemed the policyholder, to insure employees of the

  employers or members of the unions 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.
    (B) The premium for the policy shall be paid by  the  trustees  either
  wholly  from  funds  contributed  by  the  employer  or employers of the
  insured persons or by the union or unions, or by  both,  or  from  funds
  contributed by the insured persons, or jointly from such funds and funds
  contributed  by  the insured persons specifically for their insurance. 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,  excluding  any  as  to whom evidence of
  individual insurability is not satisfactory to the insurer.
    (C) The policy shall insure at least fifty persons at date of issue.
    (D) The amounts of insurance under the policy shall be based upon some
  plan precluding individual selection either by the insured persons or by
  the policyholder, employers, or unions. However, such a plan may  permit
  a limited number of selections by employees or members if the selections
  offered utilize a consistent pattern of grading the amounts of insurance
  for  individual  group members so that the resulting pattern of coverage
  is reasonable.
    (E) With respect to a policy issued to a trustee or trustees of a fund
  established by one or more labor unions, or by one or more employers and
  one or more labor unions the  proposed  insured  must  submit,  and  the
  insurer must obtain, a written certification that a reasonable number of
  comparative  bids  have  been  obtained from different insurers and that
  such bids have been considered by the trustees before making a  decision
  concerning  which  bid  to  accept.  Such  decision  must  be  made at a
  trustees' meeting held on a date certain, and a copy of the  minutes  of
  such meeting must be attached to such certification.
    (5)  A policy issued to a trustee or trustees of a fund established or
  participated in by the employer members of a  trade  association,  which
  trustee  or  trustees  shall  be  deemed  the  policyholder,  to  insure
  employees of such employers for the benefit of persons  other  than  the
  association or the employers, subject to the following requirements:
    (A) The policy may be issued only if:
    (i)  the  association has been in existence for at least two years and
  was formed for purposes principally other than obtaining insurance, and
    (ii) the participating employers, meaning such employer members  whose
  employees  are to be insured, constitute at date of issue at least fifty
  percent of the total employers eligible to participate, unless the total
  number of persons covered at date of issue exceeds six hundred, in which
  event such participating employers must constitute at least  twenty-five
  percent   of   such  total  employers,  in  either  case  omitting  from
  consideration any employer whose employees are already covered for group
  life insurance;
    (B) The persons eligible for insurance under the policy shall  be  all
  of  the employees of the participating employers, or all of any class or
  classes thereof determined by conditions pertaining to their employment.
    (C) The premium for the  policy  shall  be  paid  by  the  trustee  or
  trustees either wholly from funds contributed by the employers or by the
  employees  or  funds  contributed  jointly  by  the  employers  and  the
  employees. A policy on which no part of the premium so payable is to  be
  derived  from funds contributed by the insured employees must insure all
  eligible employees, excluding any as  to  whom  evidence  of  individual
  insurability is not satisfactory to the insurer;

    (D) The policy must cover at least fifty employees at date of issue;
    (E)  The amounts of insurance under the policy must be based upon some
  plan precluding individual selection either by the employees or  by  the
  policyholder  or the employer. However, such a plan may permit a limited
  number of selections by employees if the selections  offered  utilize  a
  consistent  pattern  of  grading  the amount of insurance for individual
  group members so that the resulting pattern of coverage is reasonable.
    (6) A policy issued to a duly organized association of  civil  service
  employees  which  shall  include  in  its  membership not less than five
  thousand civil service employees having a common employer, or to a  duly
  organized  association  of teachers having a membership of not less than
  five thousand, which association, in either event, shall be  deemed  the
  policyholder,  and  which  shall  have been formed and is maintained for
  purposes other than to effect group life insurance on its members.  Such
  policy  shall  insure  only members of such association, with or without
  evidence of individual insurability satisfactory to the  insurer,  based
  upon  a  plan  which will preclude individual selection. However, such a
  plan may permit a  limited  number  of  selections  by  members  if  the
  selections  offered  utilize a consistent pattern of grading the amounts
  of insurance for individual group members so that the resulting  pattern
  of coverage is reasonable. The premium on such policy may be paid by the
  association  or by the association and the insured members jointly or by
  the insured members alone. Every member  of  such  association  in  good
  standing shall have opportunity to apply for such insurance and not less
  than  sixty  percent  of the eligible members in good standing may be so
  insured. Such policy shall provide for the payment of  benefits,  except
  policy  dividends,  to  the  person  insured  or  to some beneficiary or
  beneficiaries, other than the association or  any  of  its  officers  or
  directors,  as  such,  and  shall  also  provide  for  the issuance of a
  certificate to the association for delivery to the person insured or  to
  such beneficiary, as evidence of such insurance.
    (7)  A  policy  insuring the members of one or more troops or units of
  the state  troopers  or  state  police  of  any  state,  issued  to  the
  commanding  officer  of the state troopers or state police, who shall be
  deemed the policyholder, the premium on which  is  to  be  paid  by  the
  members  insured;  or  a policy covering the members of one or more duly
  incorporated policemen's benevolent  associations  or  of  one  or  more
  associations   or   organizations  of  uniformed  firemen  or  volunteer
  firefighters  or  volunteer  ambulance  workers  which  association   or
  organization  shall  have been in existence for at least two years prior
  to the issuance of such policy and which shall have twenty-five  members
  at  the  time  of  the issuance of such policy, which shall be issued to
  such association or to a trustee or trustees of a fund  established,  or
  participated in, by one or more of such associations or organizations as
  the  policyholder.  If the opportunity to take such insurance is offered
  to all eligible members of a  unit  of  such  state  troopers  or  state
  police,  or  to  all  eligible  members of such incorporated policemen's
  benevolent association or of an association or organization of uniformed
  firemen, volunteer firefighters, then not less  than  fifty  percent  of
  such  members  or,  if  less,  fifty  or  more of such members may be so
  insured. If the insurance is limited to those eligible members  who  are
  employed  as  state  troopers, policemen, firemen or volunteer ambulance
  workers, then not less than  sixty  percent  or  five  hundred  of  such
  members, whichever is less, may be so insured. Such policy shall provide
  for  the  payment  of  benefits,  except policy dividends, to the person
  insured or  to  some  beneficiary  or  beneficiaries,  other  than  such
  commanding officer or such association or any of its officials, as such,
  and  shall  also  provide  for  the  issuance  of  a  certificate to the

  policyholder for delivery to the person insured or to such  beneficiary,
  as  evidence  of  such insurance. For the purposes of this paragraph any
  association currently holding premium dividends as a result of  policies
  issued  under this section shall be permitted to maintain said dividends
  for the general purposes of the entire membership. For the  purposes  of
  this paragraph the term "eligible members of an association of volunteer
  firefighters  or  volunteer ambulance workers" means members who perform
  services in fire-fighting duties or members of a volunteer  exempt  fire
  benevolent   association   who   are   entitled  to  benefits  from  the
  expenditures of foreign fire insurance tax moneys,  including,  inactive
  exempt  volunteer  firefighters as defined by section two hundred of the
  general municipal law or in ambulance-related duties, respectively.  The
  amounts  of  insurance  may be based upon a plan which permits a limited
  number of selections by the members if the selections offered utilize  a
  consistent  pattern  of  grading the amounts of insurance for individual
  group members so that the resulting pattern of coverage is reasonable.
    (8) (A) A policy issued to a municipal corporation or a public housing
  authority,  which  corporation  or  authority  shall   be   deemed   the
  policyholder,   insuring,   with   or  without  evidence  of  individual
  insurability satisfactory to the  insurer,  not  less  than  twenty-five
  employees  of  such corporation or authority, except that in each of the
  villages of Croton-on-Hudson and Lloyd Harbor not  less  than  ten  such
  employees,  and  insuring  all  of such employees or all of any class or
  classes thereof determined by conditions pertaining to  the  employment,
  for  amounts  of  insurance  on each person insured based upon some plan
  which will preclude individual  selection.  However,  such  a  plan  may
  permit  a  limited  number  of selections by employees if the selections
  offered utilize a consistent pattern of grading the amounts of insurance
  for individual group members so that the resulting pattern  of  coverage
  is reasonable.
    (B)  The premium for the policy may be paid either by the policyholder
  or by the insured employees, or both, in the manner provided in  section
  ninety-three  of  the general municipal law. If a part of the premium is
  to be derived from funds contributed by insured  employees,  the  policy
  must   insure  not  less  than  seventy-five  percent  of  all  eligible
  employees. Such policy shall provide for the payment of benefits to  the
  person  insured  or  to some beneficiary or beneficiaries other than the
  municipal corporation or the public housing authority,  and  shall  also
  provide  for  the  issuance  of  a  certificate  to the policyholder for
  delivery to the person insured or to such beneficiary,  as  evidence  of
  such  insurance.  A  policy  on  which  no  part of the premium is to be
  derived from funds contributed by the insured employees specifically for
  their insurance must insure all eligible employees, or all except any as
  to whom evidence of individual insurability is not satisfactory  to  the
  insurer.
    (C)  Subject to the constitution and general laws of this state, every
  municipal corporation  or  public  housing  authority  is  empowered  to
  contract  by  its  fiscal  or disbursing officer with an authorized life
  insurance  company  for  group  life  insurance  on  the  lives  of  its
  employees.
    (9) A policy issued to the state covering, with or without evidence of
  individual  insurability  satisfactory  to  the insurer, persons who are
  managerial  or  confidential  employees,  or   retired   managerial   or
  confidential  employees,  of  governments  or  public  employers for the
  purposes of article fourteen of the civil service law. The  state  shall
  be  deemed  to  be  the policyholder. With respect to its employees, the
  state and each other participating government or public  employer  shall
  be  deemed  to be the employer. The premiums or subscription charges may

  be derived from funds contributed  entirely  by  insured  employees  and
  retired  employees or by insured employees and retired employees and the
  employer jointly or  entirely  by  the  employer.  If  the  premiums  or
  subscription  charges  are  derived from funds contributed wholly by the
  employer, all eligible employees are to be covered. If all  or  part  of
  the  premiums  or  subscription  charges  are  to  be derived from funds
  contributed by insured employees and if the  opportunity  to  take  such
  insurance is offered to all eligible employees of an employer, then such
  policy  must  cover  not  less than forty percent of such employees, the
  calculation being  with  respect  to  each  employer  individually.  The
  amounts  of  insurance  may be based upon a plan which permits a limited
  number of selections by the employees if the selections offered  utilize
  a  consistent pattern of grading the amounts of insurance for individual
  group members so that the resulting pattern of coverage is reasonable.
    (10) A policy issued to an association, or to a trustee or trustees of
  a fund established, created or maintained for the benefit of members  of
  one  or  more  associations, all of whose eligible members have the same
  profession, trade or occupation, which association or associations  have
  been  organized  and  maintained  in good faith for purposes principally
  other than that of obtaining insurance and have been in active existence
  for at least two years. The policy shall insure members, or employees of
  members, of such association or associations, and except as provided  in
  paragraph  five  of subsection (a) of section three thousand two hundred
  twenty of this chapter, such policy shall provide  for  the  payment  of
  benefits  to  the  person  insured  or some beneficiary or beneficiaries
  other than  employers  and  the  association  or  associations,  or  any
  officials, representatives, trustees or agents thereof and shall provide
  for  the  issuance  of  a  certificate  to  the  persons insured or such
  beneficiary as evidence of such  insurance.  The  members  or  employees
  eligible for the insurance under the policy shall be all the members who
  have  not attained any limiting age specified in the policy, or all such
  members and their employees, or all of  any  class  or  classes  thereof
  determined   by   conditions   pertaining  to  their  employment  or  to
  association membership or both. The premium for the policy shall be paid
  by the association or trustee or trustees either from funds  contributed
  by  the  association  or  by  the  insured  individuals,  or  from funds
  contributed  jointly  by  the  association   and   insured   individuals
  specifically  for  their insurance. A policy on which all or part of the
  premium  is  to  be  derived  from  funds  contributed  by  the  insured
  individuals  specifically for their insurance must insure at least fifty
  percent of the then eligible individuals or a  minimum  of  two  hundred
  individuals,  whichever  is  less,  excluding any as to whom evidence of
  individual insurability is not satisfactory to the insurer. A policy  on
  which  no part of the premium is to be derived from funds contributed by
  the insured individuals specifically for their insurance must insure all
  eligible individuals, excluding any as to whom  evidence  of  individual
  insurability  is not satisfactory to the insurer. The policy must insure
  at least one hundred individuals  at  date  of  issue.  The  amounts  of
  insurance  on  employees  or  members  insured under the policy shall be
  based upon some plan precluding individual selection.  However,  such  a
  plan  may  permit a limited number of selections by employees or members
  if the selections offered utilize a consistent pattern  of  grading  the
  amounts  of insurance for individual group members so that the resulting
  pattern of coverage is reasonable. If a policy dividend is declared or a
  reduction in rate is made under such a policy, the excess,  if  any,  of
  the  aggregate  dividends  or  rate reductions under the policy over the
  aggregate  expenditure  for  insurance  under  such  policy  made   from
  association or employer funds, including expenditures made in connection

  with administration of such policy, shall be applied by the policyholder
  for the sole benefit of the insured individuals.
    (11)  A policy, covering persons employed pursuant to 32 U.S.C. § 709,
  members  of  the  national  guard  on  full-time  training  duty   under
  provisions  of  such  title  32,  or  on  active duty or active duty for
  training under provisions of title 10 of the United States  Code,  under
  the full-time manning program, issued to the adjutant general, who shall
  be  deemed  the  policyholder,  or  to  a  trustee or trustees of a fund
  established, created, or maintained for the benefit of such  individuals
  insured, which trustee or trustees shall be deemed the policyholder, the
  premium  of  which  is  to  be  paid  by  the individuals insured either
  directly or by deduction from wages or salary. The policy must insure at
  least fifty percent or four hundred of the individuals eligible for such
  insurance, whichever is less. Such policy shall provide for the  payment
  of  benefits  to  the  individual  insured  or  to  some  beneficiary or
  beneficiaries other than to the aforesaid trustee  or  trustees  or  the
  adjutant  general.  The  policy shall also provide for the issuance of a
  certificate to the policyholder for delivery to the  individual  insured
  or  to  such  beneficiary, as evidence of such insurance. The amounts of
  insurance may be based upon a plan which permits  a  limited  number  of
  selections  by  the  members  provided  the selections offered utilize a
  consistent pattern of grading the amounts of  insurance  for  individual
  group members so that the resulting pattern of coverage is reasonable.
    (12)  A policy issued to an association, or the trustee or trustees of
  a trust established, or participated in, by one or more associations, to
  insure association members subject to the following:
    (A) Each association shall have (i) A minimum of two  hundred  insured
  members at the policy's date of issue;
    (ii)  Been  organized  and  maintained  in  good  faith  for  purposes
  principally other than that of obtaining insurance;
    (iii) Been in active existence for at least two years; and
    (iv) A constitution and by-laws which provide that:
    (I) The association holds regular meetings not less than  annually  to
  further purposes of the association;
    (II)  The  association  collects  dues  or solicits contributions from
  members; and
    (III) The members have voting privileges  and  representation  on  the
  governing board and committees.
    (B)  The  premium  for  the policy shall be paid by the association or
  trustees either wholly from funds contributed by the association  or  by
  the  insured  individuals,  or  from  funds  contributed  jointly by the
  association and insured individuals. A policy on which no  part  of  the
  premium  is  to  be  derived  from  funds  contributed  by  the  insured
  individuals specifically for their insurance must  insure  all  eligible
  individuals excluding any as to whom evidence of individual insurability
  is not satisfactory to the insurer.
    (C) The amounts of insurance under the policy shall be based upon some
  plan precluding individual selection either by the insured persons or by
  an  association.  However, such a plan may permit a number of selections
  by the association, if  the  selections  offered  utilize  a  consistent
  pattern  of  grading  the  amounts  of  insurance  so that the resulting
  pattern of coverage is reasonable. Furthermore, such plan may  permit  a
  limited  number  of  selections  by  members  if  the selections offered
  utilize a consistent pattern of grading the  amounts  of  insurance  for
  individual  group  members  so that the resulting pattern of coverage is
  reasonable.
    (D) Except as provided in paragraph five of subsection (a) of  section
  three  thousand  two  hundred  twenty of this chapter, such policy shall

  provide for the payment of benefits to the person  insured  or  to  some
  beneficiary   or  beneficiaries,  other  than  the  association  or  any
  officials, representatives, trustees or agents thereof and shall provide
  for  the  issuance  of  a  certificate  to  the  persons insured or such
  beneficiary, as evidence of such insurance.
    (E) The premiums  charged  must  be  reasonable  in  relation  to  the
  benefits provided.
    (13)  A  policy issued to any organization, or the trustee or trustees
  of a trust established, or participated in,  by  one  or  more  of  such
  organizations to insure certain persons subject to the following:
    (A) The organization must be:
    (i)  A bank, retailer or other issuer of a credit card, charge card or
  payment card which can be used to buy goods or services, and the  policy
  must insure holders of that card;
    (ii)  A bank, savings and loan association, credit union, mutual fund,
  money market fund, stockbroker or other  similar  financial  institution
  regulated  by  state  or  federal  law,  and  the policy must insure the
  depositors, account holders or members of that institution.
    (B) Except for a credit union where the premium shall be paid entirely
  from  funds  contributed  by  the  credit  union,  the  organization  or
  organizations shall have a minimum of two hundred insured persons at the
  policy's date of issue.
    (C)  The  premium  for the policy shall be paid by the organization or
  trustees either wholly from funds contributed by the organization or  by
  the  insured  individuals,  or  from  funds  contributed  jointly by the
  organization and insured individuals. A policy on which no part  of  the
  premium  is  to  be  derived  from  funds  contributed  by  the  insured
  individuals specifically for their insurance  must  cover  all  eligible
  individuals excluding any as to whom evidence of individual insurability
  is not satisfactory to the insurer.
    (D) The amounts of insurance under the policy shall be based upon some
  plan precluding individual selection either by the insured persons or by
  the  organization.  However, such plan may permit a number of selections
  by the organization if  the  selections  offered  utilize  a  consistent
  pattern  of  grading  the  amounts  of  insurance  so that the resulting
  pattern of coverage is reasonable. Furthermore, such a plan may permit a
  limited number of  selections  by  members  if  the  selections  offered
  utilize  a  consistent  pattern  of grading the amounts of insurance for
  individual group members so that the resulting pattern  of  coverage  is
  reasonable.
    (E)  Except as provided in paragraph five of subsection (a) of section
  three thousand two hundred twenty of this  chapter,  such  policy  shall
  provide  for  the  payment of benefits to the persons insured or to some
  beneficiary  or  beneficiaries  other  than  the  organization,  or  any
  official, representatives, trustees or agents thereof, and shall provide
  for  the  issuance  of  a  certificate  to  the  persons insured or such
  beneficiary, as evidence of such insurance.
    (F) The premiums  charged  must  be  reasonable  in  relation  to  the
  benefits provided.
    (14)  A  policy  issued  to  insure  any  other  group approved by the
  superintendent upon a finding that:
    (A) There is a common enterprise or economic  or  social  affinity  or
  relationship;
    (B)  The  premiums  charged are reasonable in relation to the benefits
  provided; and
    (C)  The  issuance  of  the  policy  would  result  in  economies   of
  acquisition or administration, would be actuarially sound, and would not
  be contrary to the best interest of the public. The superintendent shall

  promulgate  regulations  setting  forth  any  such groups that have been
  accepted as qualifying pursuant to this paragraph.
    (c)  (1) No domestic, foreign or alien life insurance company shall be
  permitted to do business in this state if it hereafter issues, within or
  without this state, any policy of group  life  insurance  which  on  its
  issuance does not appear to be self-supporting on reasonable assumptions
  as to interest, mortality and expense.
    (2)  Anything  in  this  chapter  to the contrary notwithstanding, any
  group life insurance policy  issued  or  delivered  in  this  state  may
  provide  for readjustment of the rate of premium based on the experience
  thereunder, at the end of the first year or of any  subsequent  year  of
  insurance thereunder, and such readjustment may be made retroactive only
  for  such policy year. Any such rate readjustment shall be computed on a
  basis which is equitable to all group life insurance policies.
    (d) In the event a group life insurance policy  hereafter  issued  for
  delivery  in  this  state  permits  a  certificate  holder to convert to
  another type of  life  insurance  within  a  specified  time  after  the
  happening of an event, such certificate holder shall be notified of such
  privilege  and  its  duration  within  fifteen  days before or after the
  happening of the event, provided that if such notice be given more  than
  fifteen  days,  but  less  than  ninety days after the happening of such
  event, the time allowed for the exercise of such privilege of conversion
  shall be extended for forty-five days after the giving of  such  notice.
  If  such  notice  be not given within ninety days after the happening of
  the event,  the  time  allowed  for  the  exercise  of  such  conversion
  privilege shall expire at the end of such ninety days. Written notice by
  the  policyholder  given  to  the  certificate  holder  or mailed to the
  certificate holder at his last known address, or written notice  by  the
  insurer  mailed  to the certificate holder at the last address furnished
  to the insurer by the policyholder, shall be deemed full compliance with
  the provisions of this subsection for the giving of notice.
    (e) Each domestic insurer and each  foreign  or  alien  insurer  doing
  business  in  this state shall file with the superintendent its schedule
  of rates of commissions, compensation and other fees  or  allowances  to
  agents  and brokers pertaining to the solicitation or sale of group life
  insurance and of fees or allowances, exclusive  of  amounts  payable  to
  persons  who  are  in  the  regular  employ of the insurer other than as
  agent, to any individuals,  firms  or  corporations  pertaining  to  the
  service  or  administration  of group life insurance, whether transacted
  within or without this state. An insurer may revise such schedules  from
  time   to   time,  and  shall  file  such  revised  schedules  with  the
  superintendent. No insurer shall pay to  an  agent,  agents,  broker  or
  brokers  or any combination of licensees for the solicitation or sale of
  a policy of group life insurance or for any  other  purpose  related  to
  such  group  insurance  any  commission,  compensation  or other fees or
  allowances in excess of that determined on the basis of the schedules of
  such insurer as then on file with the  superintendent;  nor  shall  such
  insurer  pay  for  services  pertaining to the service or administration
  thereof to any individual, firm or corporation any fees, commissions  or
  allowances in excess of that determined on the basis of the schedules of
  such  insurer  as  then  on  file  with  the  superintendent or for such
  services except  such  as  are  rendered  in  behalf  of  such  insurer,
  provided, however, nothing contained herein shall apply to or affect the
  computation of dividends or experience rating credits.
    (f)  Any policy of group life insurance may include provisions for the
  payment by the insurer of life insurance benefits upon the death of  the
  spouse  of  the insured employee or member or his or her child dependent
  upon him or  her  for  support  and  maintenance  or  any  other  person

  dependent  upon  the insured employee or member, provided that insurance
  upon the life of the spouse or other person shall not exceed the  amount
  of insurance for which the employee or member is eligible, nor shall the
  insurance  upon  the  life  of  each  dependent  child so insured exceed
  twenty-five thousand dollars. A policy of insurance issued in accordance
  with paragraph three of subsection (b) of this  section,  while  it  may
  provide  coverage  for  a  spouse  of the insured employee or member, it
  shall not, however, provide  coverage  for  a  dependent  child  of  the
  insured  employee  or  member. An insurer providing group life insurance
  for  a  spouse  or  dependent  children  shall   require   evidence   of
  insurability   sufficient   to   protect   against  substantial  adverse
  selection.
    (g) An insurer authorized or licensed to do business in this state may
  solicit or make available credit life insurance coverage in  this  state
  as  provided  for  in  paragraph three of subsection (b) of this section
  under a policy of group life insurance only if the policy  is  delivered
  to  policyholders  described  in  and  conforming  to  the definition in
  paragraph three of subsection (b) of this section, and with  respect  to
  all  credit  transactions  entered  into in this state, the policy fully
  complies with the requirements of paragraph twelve of subsection (a)  of
  section three thousand two hundred twenty of this chapter.
    (h)(1)  Any  dividend hereafter apportioned on any participating group
  insurance policy, or any rate reduction hereafter made or  continued  on
  any  non-participating group policy for the first or any subsequent year
  of insurance under any such policy heretofore or hereafter issued  under
  paragraph  twelve,  thirteen  or  fourteen  of  subsection  (b)  of this
  section, may be applied to reduce the policyholder's part of the cost of
  such policy, except that the excess, if any, of the insured's  aggregate
  contribution  under  the  policy  over  the net cost (gross premium less
  dividends or rate reductions) of the insurance shall be applied  at  the
  discretion  of the insurer either as a cash payment to the insured or to
  reduce the insured's premium, unless the insured assigns the dividend or
  rate reduction to the policyholder. If a dividend or rate  reduction  is
  payable  upon  termination  of  the policy the insurer shall either make
  payment to the  insured  or  to  the  policyholder  upon  receipt  of  a
  certification  from the policyholder that the dividend or rate reduction
  will be distributed by the policyholder to the insureds  or  applied  to
  reduce the insured's premium.
    (2)  The provisions of paragraph one of this subsection shall apply to
  New  York  residents  insured  under  a  policy  issued  in  any   other
  jurisdiction to a group which is not of the type described in paragraphs
  one through eleven of subsection (b) of this section.
    (i) (1) The provisions of subsections (d), (f) and (h) of this section
  shall not apply to policies issued under the authority of subsection (d)
  of  section  three  thousand  two hundred five of this chapter, provided
  such  policies  are  issued  in  compliance  with  the  requirements  of
  subsection  (d) and subsection (e) of section three thousand two hundred
  five of this chapter.
    (2) Any life insurance company authorized to do business in this state
  may deliver in this state policies  of  group  insurance  issued  to  an
  employer  or  to  the  trustee  of  a  fund  established  by one or more
  employers, or one or more employers and one or more labor unions without
  complying with the provisions of paragraphs one and four  of  subsection
  (b)  of this section where group insurance is issued under the authority
  of subsection (d) or subparagraph (B) of paragraph (1) of subsection (a)
  of section three thousand two hundred five  of  this  chapter,  provided
  that,  prior to or at the commencement of coverage on any person under a
  policy issued under the authority of such subparagraph:

    (A) the employer providing such insurance  coverage  or  causing  such
  coverage  to  be issued notifies the prospective insured in writing: (i)
  of the intent to insure the employee's life, specifying in  such  notice
  the  maximum  face amount for which the employee could be insured at the
  time  the contract is issued; and (ii) that the employer or policyholder
  will be a beneficiary of any proceeds payable  upon  the  death  of  the
  employee; and
    (B)  the  prospective  insured  employee  consents  in writing to such
  coverage.