ENROLLED
COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 467
(Senator Jenkins, original sponsor)
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[Passed March 11, 2006; in effect ninety days from passage.]
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AN ACT to amend and reenact §33-14-2 of the Code of West Virginia,
1931, as amended, relating to modifying the employee group
requirements for group life insurance.
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 is actively engaged in and
devotes a substantial part of his 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 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 on 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.
(c) An insurer may exclude or limit the coverage on any person
as to whom evidence of individual insurability is not satisfactory
to the insurer.
(d) The policy must cover at least two 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 employer or trustees.