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. § 3809)
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§ 3809. Association of employers groups
The lives of a group of individuals may be insured under a policy issued to an association
of two or more employers, which association shall be deemed the policyholder, to insure
employees of such employers for the benefits of persons other than the association
or the employers, subject to the following requirements:
(1) The policy may be issued only if:
(A) the association has been in existence for at least five years and was formed for purposes
other than obtaining the insurance; and
(B) the participating employers constitute at date of issue at least fifty percent of
the total employers eligible to participate, unless the total number of persons covered
at date of issue exceeds 600, in which event such participating employers must constitute
at least 25 percent of such total employers, in either case omitting from consideration
any employer whose employees are already covered for group life insurance.
(2) The persons eligible for insurance under the policy shall be all of the employees
of the participating employers, 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 individual proprietor or partners whenever a participating
employer is an individual proprietor or a partnership. The policy may provide that
the term “employees” shall include retired employees. The policy may provide that
the term “employees” shall include the employees of the association to which the policy
is issued.
(3) The premium for the policy shall be paid by the association, either wholly from the
association’s funds or funds contributed by the employers, or partly from such funds
and partly from funds contributed by the insured employees. No policy may be issued
on which the entire premium payable by the policyholder is to be derived from funds
contributed by the insured employees. A policy on which part of the premium so payable
is to be derived from funds contributed by the insured employees may be placed in
force only if at least 75 percent of the then eligible employees of each participating
employer, excluding any as to whom evidence of individual insurability is not satisfactory
to the insurer, elect to make the required contributions. A policy on which no part
of the premiums so payable 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.
(4) The policy must cover at least 100 employees at date of issue.
(5) The amounts of insurance under the policy must be based upon some plan precluding
individual selection either by the employees or by the policyholder or the employer. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 2, subch. 6, § 9).)