Montana § 33-20-1101 - Employee Groups

§ 33-20-1101. Employee Groups

Employee groups. (1) Subject to the requirements in subsections (2) through (5), 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 to insure employees of the employer for the benefit of persons other than the employer. The employer or trustees must be considered the policyholder. (2) (a) The employees eligible for insurance under the policy must be all of the employees of the employer or all of any class or classes of the employer determined by conditions pertaining to their employment. The policy may provide that the term "employees" includes: (i) 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 the employer's affiliated corporations, proprietors, or partnerships is under common control; (ii) the individual proprietor or partners if the employer is an individual proprietor or a partnership; or (iii) retired employees. (b) A director of a corporate employer is not eligible for insurance under the policy unless the director is otherwise eligible as a bona fide employee of the corporation by performing services other than the usual duties of a director. (c) An individual proprietor or partner is not eligible for insurance under the policy unless the individual proprietor or partner is actively engaged in and devotes a substantial part of working hours to the conduct of the business of the proprietor or partnership. (3) (a) Payment of the premium for the insurance must be made by the policyholder from: (i) the employer's funds or funds contributed by the employer; (ii) funds contributed by the insured employees or members; or (iii) funds contributed by a combination of payors in subsections (3)(a)(i) and (3)(a)(ii). (b) 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. (4) The policy must cover at least two employees at date of issue. (5) The amount of insurance under the policy must be based upon a plan precluding individual selection either by the employees or by the employer or trustees.