Public Employee Groups

TITLE 41 INSURANCE CHAPTER 20 GROUP LIFE INSURANCE 41-2006. Public employee groups. The lives of a group of individuals may be insured under a policy issued to the departmental head or to an association of public employees formed for purposes other than obtaining insurance and having, when the policy is placed in force, a membership in the classes eligible for insurance of not less than seventy-five percent (75%) of the number of employees eligible for membership in such classes, which association or departmental head shall be deemed the policyholder, to insure members of such association or public employees for the benefit of persons other than the departmental head, the association or any of its officials, subject to the following requirements: (1)  The persons eligible for insurance under the policy shall be all of the members of the association or employees of the department, or all of any class or classes thereof determined by conditions pertaining to their employment or to their membership in the association, or both. (2)  The premium for the policy shall be paid by the policyholder, either from the association’s own funds or from charges collected from the insured members or employees specifically for the insurance, or from both. Any charges collected from the insured members or employees specifically for the insurance, and the dues of the association if they include the cost of insurance, shall be collected through deductions by the employer from salaries of the members or employees. Such deductions from salary may be paid by the employer to the association or directly to the insurer. No policy may be placed in force unless and until at least seventy-five percent (75%) of the then-eligible members of the association or employees of the department, excluding any as to whom evidence of individual insurability is not satisfactory to the insurer, have elected to be covered and have authorized their employer to make the required deductions from salary. (3)  Charges collected from the insured members or employees specifically for the insurance, and the dues of the association if they include the cost of insurance, shall be determined according to each attained-age group or in not less than four (4) reasonably spaced attained-age groups. In no event shall the rate of such dues or charges be level for all members or employees regardless of attained age. (4)  The policy must cover at least five (5) persons at the date of issue. (5)  The amounts of insurance under the policy must be based upon some plan precluding individual selection by the members, the employees, or by the association. Such amounts shall in no event exceed three thousand dollars ($3,000) in the case of any member or employee and shall not exceed five hundred dollars ($500) in the case of retired members or employees and members or employees over age sixty-five (65) years. (6)  As used herein, "employees" means employees of the United States government, or of any state, or of any political subdivision or instrumentality of any of them. (7)  Groups heretofore or hereafter written under section 67-5763 , Idaho Code, are not subject to this section.