1. (1) The lives of a group of individuals may be insured under a policy issued to a policyholder who is:

   1. (a) a credit union; or
   2. (b) trustees or agents designated by two or more credit unions.

2. (2) A policy described in Subsection (1) shall insure members of a credit union for the benefit of persons other than:

   1. (a) the credit union;
   2. (b) trustees of the credit union;
   3. (c) agents of the credit union; or
   4. (d) an official of an entity described in Subsections (2)(a) through (c).

3. (3) The policies are subject to the requirements of this Subsection (3).

   1. (a) The persons eligible for insurance are:

      1. (i) all of the members of the credit union; or
      2. (ii) all of any classes of the members of the credit union.
   2. (b) The premiums shall be paid by the policyholder. Except as provided in Section 31A-22-512, a policy on which no part of the premium is collected from the covered members specifically for their insurance shall insure all eligible members.
   3. (c) A group policy issued under this section is not subject to Sections 31A-22-517 through 31A-22-521.

Amended by Chapter 125, 2005 General Session