H. B. 4298
(By Delegate H. White)
[Introduced January 31, 2006; referred to the
Committee on Banking and Insurance then the Judiciary.]
A BILL to amend and reenact §33-14-2 of the Code of West Virginia,
1931, as amended, relating to the modification of group life
insurance and employee group requirements.
Be it enacted by the Legislature of West Virginia:
That §33-14-2 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 14. GROUP LIFE INSURANCE.
§33-14-2. Employee groups.
The lives of a group of individuals may be insured under 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" shall
include retired employees. No director of a corporate employer
shall be eligible for insurance under the policy unless such person
is otherwise eligible as a bona fide employee of the corporation by
performing services other than the usual duties of a director. No
individual proprietor or partner shall be eligible for insurance
under the policy unless he
or she is actively engaged in and
devotes a substantial part of his
or her time to the conduct of the
business of the proprietor or partnership. A policy issued to
trustees may provide that the term "employees" shall include the
trustees or their employees, or both, if their duties are
principally connected with such trusteeship. A policy issued to
insure the employees of a public body may provide that the term "employees" shall include elected or appointed officials.
(b) The premium for the policy shall be paid
by the
policyholder, either wholly from the employer's funds or funds
contributed by him or partly from such funds and partly from funds
contributed by the insured employees. No policy may be issued on
which the entire premium is to be derived from funds contributed by
the insured employees, except that the entire premium may be paid
from funds contributed by the insured employees if the amount of
insurance does not exceed one thousand dollars on the life of any
employee. A policy on which part of the premium is to be derived
from funds contributed by the insured employees may be placed in
force only if at least seventy- five percent of the then eligible
employees, 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 employees
must insure all eligible employees, or all except any as to whom
evidence of individual insurability is not satisfactory to the
insurer. either from the employer's funds or from funds contributed
by the insured employees, or both. Except as provided in
subdivision (c) of this section, a policy in which no part of the
premium is to be derived from funds contributed by the insured
employees shall insure all eligible employees, except those who
reject coverage in writing. An insurer may exclude or limit the coverage on any person as to whom evidence of individual
insurability is not satisfactory to the employer.
(c) The policy must cover at least
ten two employees at date
of issue.
(d) The amounts of insurance under the policy must be based
upon some plan precluding individual selection either by the
employees or by the employer or trustees.
NOTE: The purpose of this bill is to amend the employee group
requirements for group life insurance, and to, in part, conform
language with the National Association of Insurance Commissioners'
model language.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
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