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(1) A group insurance policy offering life insurance may be issued to:
(a) policyholders who are the trustees of a fund established by two or more employers, by one or more labor unions, or similar employee organizations, or by one or more employers and one or more labor unions or similar employee organizations, to insure employees of the employers or members of the unions or the organizations for the benefit of persons other than the employers, the unions, or the organizations; or
(b) notwithstanding Subsection 31A-22-501(2):
(i) a Taft Hartley trust created in accordance with Section 302(c)(5) of the Federal Labor Management Relations Act; or
(ii) a trustee under a trust established for the purpose of facilitating the continuation of a policy when an individual's coverage would otherwise end, if the participating group through which the original coverage was offered would be eligible under this section, Section 31A-22-502, or Section 31A-22-503.
(2) A group insurance policy offering life insurance is subject to the following requirements:
(a) the persons eligible for insurance are all of the employees of the employers or all of the members of the unions or organizations, or all of any classes of employees or members;
(b) the policy may include retired or former employees or members, elected and appointed officials of a public agency if the employees of the agency are insured, and individual proprietors or partners who are employers;
(c) the policy may include the trustees or the trustees' employees, or both, if their duties are principally connected with the trusteeship;
(d) the premiums for the policy are paid by the policyholders from funds contributed by the employers, unions, or similar employee organizations, or from funds contributed by the insured persons, or any combination of these; and
(e) except as provided under Section 31A-22-512, a policy on which no part of the premium is contributed by the insured persons specifically for the insured persons' insurance is required to insure all eligible persons.