The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
Subchapter
005
:
GROUP LIFE INSURANCE
(Cite as: 8 V.S.A. § 3803)
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§ 3803. 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:
(1) 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 or she is actively
engaged in and devotes a substantial part of his or her time to the conduct of the
business of the proprietor or partnership. A policy issued to insure the employees
of a public body may provide that the term “employees” shall include elected or appointed
officials.
(2) The premium for the policy shall be paid by the policyholder, either wholly from the
employer’s funds or funds contributed by him or her, or partly from such funds and
partly from funds contributed by the insured employees. No policy may be issued on
which the entire premium is to be derived from funds contributed by the insured employees.
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.
(3) The policy must cover at least two employees at date of issue.
(4) 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. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 2, subch. 6, § 3); amended 2005, No. 36, § 7, eff. June 1, 2005; 2009, No. 137 (Adj. Sess.), § 5.)