§ 3811. Dependents’ coverage
Any group life policy issued under section 3803 (employee groups) or 3804 (labor union
groups) or 3807 (public employee groups) or 3808 (trustee groups) or 3809 (employer
association groups) or 3810a (associations and discretionary groups) of this title
may be extended to insure the employees or members against loss due to the death of
their spouses and children, or any class or classes thereof, subject to the following
requirements:
(1) The premium for the insurance shall be paid by the policyholder, either from the employer’s,
union’s, or association’s funds or funds contributed by them or from funds contributed
by the insured employees or members, or from both. If any part of the premium is
to be derived from funds contributed by the insured employees or members, the insurance
with respect to spouses and children may be placed in force only if at least 75 percent
of the then eligible employees or members who then have eligible dependents, excluding
any as to whose family members evidence of insurability is not satisfactory to the
insurer, elected to make the required contribution. If no part of the premium is
to be derived from funds contributed by the employees or members, all eligible employees
or members, excluding any as to whose family members evidence of insurability is not
satisfactory to the insurer, must be insured with respect to their spouses and children.
(2) The amounts of insurance must be based upon some plan precluding individual selection
either by the employees or members or by the policyholder, employer, or union, and
shall not exceed the amount of insurance available to the employee or member with
respect to any spouse or child.
(3) Upon termination of the insurance with respect to the members of the family of any
employee or member by reason of the employee’s or member’s termination of employment,
termination of membership in the class or classes eligible for coverage under the
policy, or death, the spouse shall be entitled to have issued by the insurer, without
evidence of insurability, an individual policy of life insurance, without disability
or other supplementary benefits, providing application for the individual policy shall
be made, and the first premium paid to the insurer, within 31 days after such termination,
subject to the requirements of subdivisions 3820(1), (2), and (3) of this title.
If any group policy terminates or is amended so as to terminate the insurance of any
class of employees or members and the employee or member is entitled to have issued
an individual policy, under section 3821 of this title, the spouse shall also be entitled to have issued by the insurer an individual policy,
subject to the conditions and limitations provided above and in section 3821 of this title. If the spouse dies within the period during that he or she would have been entitled
to have an individual policy issued in accordance with this provision, the amount
of life insurance that he or she would have been entitled to have issued under such
individual policy shall be payable as a claim under the group policy, whether or not
application for the individual policy or the payment of the first premium therefor
has been made.
(4) Notwithstanding section 3819 of this title, only one certificate need be issued for delivery to an insured person if a statement
concerning any dependent’s coverage is included in such certificate. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 2, subch. 6, § 11); amended 1987, No. 136 (Adj. Sess.), eff. April 8, 1988; 1993, No. 55, § 12, eff. June 3, 1993.)