CHAPTER 27

An Act to amend and reenact § 88.1-479 of the Code of Virginia, relating
to group life insurance which may be issued to trustees of funds
established by two or more employers, or by one or more labor unions,
or by one or more employers and labor unions. CH 200]

Approved February 11, 1958

Be it enacted by the General Assembly of Virginia:
1. P ieee § 88.1-479 of the Code of Virginia be amended and reenacted
as foll

§ 38. 1-479. Trustee groups.—A policy of group life insurance may
be issued covering the employees of two or more employers in the same
industry, or 'the members of one or more labor unions, or the employees
of one or more employers and the members of one or more labor unions.
The policy shall be issued to the trustees of a fund established by such
employers, union or unions, or employer or employers and union or
unions jointly, for the benefit of persons other than the employers or the
unions. Such insurance shall meet the following requirements:

(a) 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 employ-
ment, or to membership in the unions, or to both. 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.

(b) The premium for the policy shall be paid by the trustees either
(a) wholly from the funds contributed by the employer or employers of
the insured persons, or by the union or unions, or by both, or (b) partly
from such funds and partly from funds contributed by the insured em-
ployees or members. No policy may be issued under the provisions of this
section on which the entire premium is to be derived from funds con-
tributed by the insured employees or members. A policy on which part
of the premium is to be derived from funds contributed by the insured
employees or members may be placed in force only if at least seventy-five
per cent of the then eligible employees of any employer unit participating
in the trust, 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 premium is to be derived from funds
contributed by the insured employees or members, must insure all eligible
employees or members, or all except any as to whom evidence of individual
insurability is not satisfactory to the insurer.

(c) The policy must cover at date of issue at least one hundred per-
sons and not less than an average of five persons per employer unit; and
if the fund is established by the members of an association of employers
the policy may be issued only if (i) either (a) the participating employers
constitute at date of issue at least sixty per centum of those employer
members whose employees are not already covered for group life insurance
or (b) the total number of persons covered at date of issue exceeds six
hundred; and (ii) the policy shall not require that, if a participating
employer discontinues membership in the association, the insurance of his
employees shall cease solely by reason of such discontinuance.

(d) The amounts 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. *

(e) The trustees shall constitute the “employer” under §§ 38.1-424
to 38.1-480 for the purpose of application for the policy and as to the
person to whom the individual employee certificates shall be delivered.