Okla. Stat. tit. 36, § 36-4101

Number insured - Amount of insurance.

No policy of group life insurance shall be delivered in this

state unless it conforms to one of the following descriptions:

1. A policy issued to an employer, or to the trustees of a fund

established by an employer, which employer or trustees shall be

deemed the policyholder, to insure employees of the employer for the

benefit of persons other than the employer, subject to the following

requirements:

a. The employees eligible for insurance under the policy

shall be all of the employees of the employer, 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 employees of one or more subsidiary corporations,

and the employees, individual proprietors and partners

of one or more affiliated corporations, proprietors or

partnerships if the business of the employer and of

such affiliated corporations, proprietors or

partnerships is under common control through stock

ownership or contract, or otherwise. The policy may

provide that the term "employees" shall include the

individual proprietor or partners if the employer is

an individual proprietor or a partnership. The policy

may provide that the term "employees" shall include

retired employees. No director of a corporate

employer shall be eligible for insurance under the

policy unless such a 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 is actively

engaged in and devotes a substantial part of his 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. A policy issued to

insure the employees of a public body may provide that

the term "employee" shall include elected or appointed

officials.

b. The premium for the policy shall be paid by the

policyholder, either wholly from the employer's funds

or funds contributed by him, or partly from such funds

and partly from funds contributed by the insured

employees, or from funds contributed wholly by the

insured employees. A policy on which no part of the

Oklahoma Statutes - Title 36. Insurance Page 918

premium 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 insurability

is not satisfactory to the insurer.

c. The amounts of insurance under the policy must be

based upon some plan precluding individual selection

either by the employees or by the employer or trustee;

2. A policy issued to a creditor, who shall be deemed to be the

policyholder, to insure debtors of the creditor. Credit unions and

associations formed for the purpose of making loans to their members

shall be deemed to be creditors within the meaning of this section.

Policies issued to a creditor to insure debtors of the creditor are

subject to the following requirements:

a. The debtors eligible for insurance under the policy

shall be all of the debtors of the creditor or all of

any class or classes thereof determined by conditions

pertaining to the indebtedness or to the purchase

giving rise to the indebtedness. The policy may

provide that the term "debtors" shall include the

debtors of one or more subsidiary corporations, and

the debtors of one or more affiliated corporations,

proprietors or partnerships if the business of the

policyholder and of such affiliated corporations,

proprietors or partnerships is under common control

through stock ownership, contract or otherwise.

b. The premium for the policy shall be paid by the

policyholder, either from the creditor's funds, or
e or more subsidiary corporations, and

the debtors of one or more affiliated corporations,

proprietors or partnerships if the business of the

policyholder and of such affiliated corporations,

proprietors or partnerships is under common control

through stock ownership, contract or otherwise.

b. The premium for the policy shall be paid by the

policyholder, either from the creditor's funds, or

from charges collected from the insured debtors, or

from both. A policy on which part or all of the

premium is to be derived from the collection from the

insured debtors of identifiable charges not required

of uninsured debtors shall not include, in the class

or classes of debtors eligible for insurance, debtors

under obligation outstanding at its date of issue

without evidence of individual insurability unless at

least seventy-five percent (75%) of the then eligible

debtors elect to pay the required charges. A policy

on which no part of the premium is to be derived from

the collection of such identifiable charges must

insure all eligible debtors, or all except any as to

whom evidence of individual insurability is not

satisfactory to the insurer.

c. The policy may be issued only if the group of eligible

debtors is then receiving new entrants at the rate of

at least one hundred persons yearly, or may reasonably

be expected to receive at least one hundred new

entrants during the first policy year, and only if the

Oklahoma Statutes - Title 36. Insurance Page 919

policy reserves to the insurer the right to require

evidence of individual insurability if less than

seventy-five percent (75%) of the new entrants become

insured.

d. The amount of insurance on the life of any debtor

shall at no time exceed the amount owed by him which

is repayable to the creditor, or One Hundred Thousand

Dollars ($100,000.00), whichever is less, provided

further, no company licensed to do business in this

state shall issue in excess of One Hundred Thousand

Dollars ($100,000.00) group credit life insurance on

one individual in the State of Oklahoma.

e. The insurance shall be payable to the policyholder.

Such payment shall reduce or extinguish the unpaid

indebtedness of the debtor to the extent of such

payment;

3. A policy issued to a labor union, which shall be deemed the

policyholder, to insure members of such union for the benefit of

persons other than the union or any of its officials,

representatives or agents, subject to the following requirements:

a. The members eligible for insurance under the policy

shall be all of the members of the union, or all of

any class or classes thereof determined by conditions

pertaining to their employment, or to membership in

the union, or both.

b. The premium for the policy shall be paid by the

policyholder, either wholly from the union's funds, or

partly from such funds and partly from funds

contributed by the insured members specifically for

their insurance, or from funds contributed wholly by

the insured members. A policy on which no part of the

premium is to be derived from funds contributed by the

insured members specifically for their insurance must

insure all eligible members or all except any as to

whom evidence of individual insurability is not

satisfactory to the insurer.

c. The amount of insurance under the policy must be based

upon some plan precluding individual selection either

by the members or by the union;

4. A policy issued to the trustees of a fund established in

this state by two or more employers in the same industry, provided a

majority of the employees to be insured of each employer are located

within this state, or to the trustees of a fund established by one

or more labor unions, or by one or more employers in the same

industry and one or more labor unions or by one or more employers

and one or more labor unions whose members are in the same or

related occupation or trades, or by an association of persons,
ded a

majority of the employees to be insured of each employer are located

within this state, or to the trustees of a fund established by one

or more labor unions, or by one or more employers in the same

industry and one or more labor unions or by one or more employers

and one or more labor unions whose members are in the same or

related occupation or trades, or by an association of persons,

Oklahoma Statutes - Title 36. Insurance Page 920

licensed by the State of Oklahoma to engage in a recognized

profession, which trustees shall be deemed the policyholder to

insure employees of the employers or members of the unions or

members of an association of persons, licensed by the State of

Oklahoma to engage in a recognized profession, for the benefit of

persons other than the employers or the unions, or the association

of persons, licensed by the State of Oklahoma to engage in a

recognized profession, subject to 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 union, or all the members of an association of

persons, licensed by the State of Oklahoma to engage

in a recognized profession, or all of any class or

classes thereof determined by conditions pertaining to

their employment, or to membership in the unions, or

to both, or pertaining to membership in the

association of persons, licensed by the State of

Oklahoma to engage in a recognized profession. The

policy may provide that the term "employees" shall

include the individual proprietor or partners if any

employer is an individual proprietor or a partnership.

The policy may provide that the term "employees" shall

include retired employees. 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 a partner shall be

eligible for insurance under the policy unless he is

actively engaged in and devotes a substantial part of

his 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, and that

the term "members of an association" shall include

employees of members.

b. 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 by an association of

persons, licensed by the State of Oklahoma to engage

in a recognized profession, or from funds contributed

wholly or in part 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,

Oklahoma Statutes - Title 36. Insurance Page 921

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 persons; and if the fund is established by the

members of an association of employers the policy may

be issued only if (a) either (i) the participating

employers constitute at date of issue at least sixty

percent (60%) of those employer members whose

employees are not already covered by group life

insurance or (ii) the total number of persons covered

at date of issue exceeds six hundred; and (b) 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,
date of issue exceeds six hundred; and (b) 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;

5. A policy issued to any nonprofit industrial association to

insure the executives of employer members of a nonprofit industrial

association, which is now and has been actively functioning for a

period of not less than ten (10) years, such policy to be issued to

such association which shall be deemed to be the employer for the

purposes of this article, or to the association and executives of

such employer members jointly and insuring only all of such

executives for amounts of insurance based upon some plan which will

preclude individual selection, for the benefit of persons other than

such association, and the premium on which shall be paid by the

employer members or the employer members and the executives of such

employer members jointly;

6. A policy issued to a credit union which shall be deemed the

policyholder, to insure eligible members for the benefit of someone

other than the credit union or its officials and subject to the

following requirements:

a. The members eligible for insurance under the policy

shall be all the members of the credit union or all of

any class or classes thereof.

b. The premiums for the policy shall be paid by the

policyholder, either wholly from the credit union's

funds, or partly from such funds and partly from funds

contributed by the insured members specifically for

their insurance. A policy on which no part of the

premium is to be derived from funds contributed by the

insured members specifically for their insurance must

insure all eligible members or all except any as to

Oklahoma Statutes - Title 36. Insurance Page 922

whom evidence of individual insurability is not

satisfactory to the insurer.

c. The amount of insurance under the policy may be based

on the amount of the member's savings in the credit

union or upon some other plan precluding individual

selection either by the members or by the credit

union;

7. A policy issued to a charitable, benevolent, educational or

religious institution, or their agencies, to insure the members

thereof for the purpose set forth in subsection D of Section 3604 of

this title;

8. A policy issued to an alumni association of an institution

of higher education accredited by the Oklahoma State Regents for

Higher Education, to insure the members thereof for the purpose set

forth in subsection E of Section 3604 of this title;

9. A policy to an association, which has a constitution and

bylaws and which has been organized and is maintained in good faith

for purposes other than that of obtaining insurance, that insures at

least ten members, employees, or employees of members of the

association or its officers or trustees. The term “employees” as

used in this paragraph shall include retired employees.

“Association” means, with respect to life insurance coverage

offered, an association which:

a. has been actively in existence for at least five (5)

years,

b. has been formed and maintained in good faith for

purposes other than obtaining insurance,

c. does not condition membership in the association on

any health status-related factor relating to an

individual, including an employee of an employer or a

dependent of an employee or association member,

d. makes life insurance coverage offered through the

association available to all members regardless of any

health status-related factor relating to such member

or individuals eligible for coverage through a member,

e. does not make life insurance coverage offered through

the association available other than in connection
e of an employer or a

dependent of an employee or association member,

d. makes life insurance coverage offered through the

association available to all members regardless of any

health status-related factor relating to such member

or individuals eligible for coverage through a member,

e. does not make life insurance coverage offered through

the association available other than in connection

with a member of the association, and

f. meets such additional requirements as may be imposed

under state law;

10. A policy issued to cover any other group subject to the

following requirements:

a. no such group life insurance policy shall be delivered

in this state unless the Commissioner of Insurance

finds that:

(1) the issuance of such group policy is not contrary

to the best interest of the public,

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(2) the issuance of the group policy would result in

economies of acquisition or administration, and

(3) the benefits are reasonable in relation to the

premiums charged, and

b. the premium for the policy shall be paid either from

the policyholder’s funds or from funds contributed by

the covered person or from both; or

11. A policy issued to cover any other substantially similar

group which, in the discretion of the Insurance Commissioner, may be

subject to the issuance of a group life policy or contract.