Section 532.1 - Types permittedNo policy of group life insurance shall be delivered in this State unless it conforms to one of the following descriptions and to the requirements as to each set forth in sections two, three, four and five of this act.
(1) 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 employes of the employer for the benefit of persons other than the employer.(2) A policy issued to a creditor, who shall be deemed the policyholder, to insure debtors of the creditor.(3) A policy issued to a labor union, a credit union, a police fraternity, a firemen's fraternity or a teachers' association or federation, which shall be deemed the policyholder, to insure members of such union, fraternity, association or federation for the benefit of persons other than the union, fraternity, association or federation or any of their officials, representatives or agents.(4) A policy issued to the trustees of a fund established by an insurer for two or more employers or by two or more employers or by an insurer for one or more labor unions, or by one or more labor unions or by an insurer for one or more employers and one or more labor unions or by one or more employers and one or more labor unions or by an insurer for one or more associations meeting the qualifications as defined in clause (5.1) or by one or more associations meeting the qualifications as defined in clause (5.1), which trustees shall be deemed the policyholder, to insure employes of the employers or members of the unions or such association for the benefit of persons other than the employers or the unions or members, employes thereof, and employes of the associations for the benefit of persons other than the employers or the unions or the associations.(5) Life insurance covering the members of one or more companies, batteries, troops, battalions, divisions, or other units of the National Guard or Naval Militia of any state, written under a policy issued to the Commanding General of the National Guard or Commanding Officer of the Naval Militia, as the case may be, who shall be deemed to be the employer for the purposes of this act, the premium on which is to be paid by the members of such units for the benefit of persons other than the employer: Provided, however, That when the benefits of the policy are offered to all eligible members of the unit of the National Guard or Naval Militia, not less than seventy-five per centum of the members of such unit may be so insured.(5.1) A policy issued to an association, which shall have a constitution and bylaws and which has been organized by other than an insurer, is maintained in good faith for purposes other than that of obtaining insurance, has been in active existence for at least two years, operates from offices other than the insurer's and is controlled by principals other than the insurer's.(5.2) A policy issued to a group, other than one described in clauses (1) through (5.1), and under which the Insurance Commissioner finds that:(i) the issuance of such group policy is not contrary to the best interest of the public;(ii) the issuance of such group policy would result in economies of acquisition or administration; and(iii) the benefits are reasonable in relation to the premiums charged.(6) Nothing contained herein shall be construed to define as a group the lives covered by (A) a policy insuring only individuals related by marriage, by blood, or by legal adoption; or, (B) a joint life policy insuring only individuals having an insurable interest in each other's lives.(7) A policy issued in accordance with clause (1), (3), (4), (5) or (5.1) may include provisions for the payment by the insurer of life insurance benefits upon the death of the spouse of the insured employe or member, and upon the death of one or more of his or her children dependent upon him or her for support and maintenance.1949, May 11, P.L. 1210, § 1. Amended 1951, May 25, P.L. 410, § 1; 1951, June 28, P.L. 605, § 1; 1956, May 29, P.L. (1955) 1812, § 1; 1959, Nov. 9, P.L. 1388, No. 488, § 1; 1968, July 31, P.L. 939, No. 287, § 1; 1978, Oct. 5, P.L. 1059, No. 247, § 1, effective in 60 days; 1994, Feb. 3, P.L. 1, No. 1, § 1, effective in 90 days.