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. § 3808)
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§ 3808. Trustee groups
The lives of a group of individuals may be insured under a policy issued to the trustees
of a fund established by, adopted by, or participated in by two or more employers,
or by one or more labor unions, or by one or more employers and one or more labor
unions, which trustees shall be deemed the policyholder, to insure employees of the
employers or members of the unions for the benefit of persons other than the employers
or the unions, subject to the following requirements:
(1) No policy may be issued to insure employees of any employer whose eligibility to participate
in the fund as an employer arises out of considerations directly related to the employer
being a commercial correspondent or business client or patron of another employer,
except where such other employer exercises substantial control over the business operations
of the participating employers.
(2) The persons eligible for insurance shall be all of the employees of the employers
or all of the members of the unions, or all of any class or classes thereof determined
by conditions pertaining to their employment, or to membership in the unions, or to
both. The policy may provide that the term “employees” shall include retired employees,
former employees, and the individual proprietor or partners if an employer is an individual
proprietor or a partnership. 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.
The policy may provide that the term “employees” shall include the trustees or their
employees, or both, if their duties are principally connected with such trusteeship.
(3) The premium for the policy shall be paid by the trustees wholly from funds contributed
by the employer or employers of the insured persons, or by the union or unions, or
by both, or partly from such funds and partly from funds contributed by the insured
persons. A policy on which no part of the premium is to be derived from funds contributed
by the insured persons specifically for their insurance must insure all eligible persons,
or all except any as to whom evidence of individual insurability is not satisfactory
to the insurer.
(4) The policy must cover at date of issue at least 100 persons; and it must cover an
average of not less than three persons per employer unit unless the policy is issued
to the trustees of a fund established by employers that have assumed obligations through
a collective bargaining agreement and are participating in the fund either pursuant
to those obligations with regard to one or more classes of their employees that are
encompassed in the collective bargaining agreement or as a method of providing insurance
benefits for other classes of their employees, or unless the policy is issued to the
trustees of a fund established by one or more labor unions.
(5) The amount of insurance under the policy must be based upon some plan precluding individual
selection either by the insured persons or by the policyholder, employers, or unions. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 2, subch. 6, § 8); amended 2009, No. 137 (Adj. Sess.), § 6.)