§ 31A-22-502. Employee groups.

(1) As used in this section:

(a) "Employees" includes:

(i) for one or more affiliated corporations, proprietorships, or partnerships under common control, their:

(A) officers;

(B) managers;

(C) retired employees; and

(D) individual proprietors or partners; and

(ii) for a trusteeship, if their duties are primarily connected with the trusteeship:

(A) trustees;

(B) employees of trustees; or

(C) both Subsection (1)(a)(ii)(A) and (B).

(b) "Employer" includes a Utah public agency.

(c)

(i) "Utah public agency" means a public institution that:

(A) derives its authority from this state; and

(B) is not privately owned.

(ii) "Utah public agency" includes:

(A) a local political subdivision as defined in Section 11-14-102;

(B) the state;

(C) a department or agency of the state; and

(D) all public educational institutions.

(2) The lives of a group of individuals may be insured under a policy:

(a) issued as policyholder, to:

(i) an employer; or

(ii) the trustees of a fund established by an employer;

(b) insuring employees of the employer for the benefit of persons other than the employer; and

(c) subject to the requirements of Subsections (3) through (5).

(3)

(a) All the employer's employees or all of any class of employees of the employer shall be eligible for insurance under the policy described in Subsection (2).

(b) A policy issued to insure the employees of a public body may include elected or appointed officials.

(4) A Utah public agency may pay or authorize the payment out of the Utah public agency's corporate revenue, the premiums required to maintain the group insurance in force.

(5)

(a) The premiums for the policy described in Subsection (2) shall be paid by the policyholders:

(i) from the employer's funds;

(ii) funds contributed by the insured employees; or

(iii) both the funds described in Subsections (5)(a)(i) and (ii).

(b) Except as provided under Section 31A-22-512, a policy on which no part of the premium is contributed by the insured employees shall insure all eligible employees.

Amended by Chapter 105, 2005 General Session