Section 20-1251.01 - Credit union groupsThe lives of a group of individuals may be insured under a policy issued to a credit union organized under the laws of this state or the federal credit union act, which shall be considered the policyholder, to insure eligible members for amounts of insurance related to the share balance of each member, based upon some plan which will preclude individual selection, for the benefit of someone other than the credit union or its officials and subject to the following requirements:
1. The members eligible for insurance under the policy shall be all the members of the credit union who meet standard physical requirement conditions of the insurer, or all of any class or classes of them determined by conditions pertaining to their age or to membership in the credit union or both.2. The premiums for the policy shall be paid by the policyholder, either from the credit union's funds, or from funds contributed by the insured members specifically for their insurance, or from both. A policy on which no part of the premium is to be derived from funds contributed by the insured members specifically for their insurance must insure all eligible members or all except those whose evidence of individual insurability is not satisfactory to the insurer.3. The policy must cover at least twenty-five members at the date of issue.