§ 26-19-102 — "Group disability insurance" defined; eligible groups

(a) "Group disability insurance" means that form of
disability insurance covering groups of persons as described in
this section and W.S. 26-19-110, with or without one (1) or more
members of their families or one (1) or more of their
dependents, or covering one (1) or more members of the families
or one (1) or more dependents of the groups of persons. Except
as provided in W.S. 26-19-110, a group disability insurance
policy shall not be issued for delivery in this state unless the
policy is issued to:
(i) An employer or trustees of a fund established or
adopted by an employer, which employer or trustee is deemed the
policyholder, insuring the employer's employees for the benefit
of persons other than the employer, subject to the following
requirements:
(A) All employees or any class of employees are
eligible for insurance under the terms of the policy;
(B) The policy may define "employees" to
include:
(I) The officers, managers and employees of
the employer;
(II) The individual proprietor or partner
if the employer is an individual proprietor or partnership;
(III) The officers, managers and employees
of subsidiary or affiliated corporations;
(IV) The individual proprietors, partners
and employees of individuals and firms, if the business of the
employer and the individual or firm is under common control
through stock ownership, contract, or otherwise;
(V) Retired employees;
(VI) Former employees;
(VII) Directors of a corporate employer;
(VIII) Elected or appointed officials;
(IX) The trustees, their employees, or
both, if their duties are principally connected with the
trusteeship.
(C) If the insured employee does not pay any
part of the premium for his insurance, the policy shall insure
all eligible employees, except those who reject the coverage in
writing.
(ii) An association, or a trust or the trustee of a
fund established or adopted for the benefit of members of one
(1) or more associations. The association shall have at the time
the policy is first issued a minimum of fifty (50) persons
eligible for insurance, shall have a constitution and bylaws
which provide that the association holds regular meetings not
less than annually to further the members' purposes, that the
association, except for credit unions, collects dues or solicits
contributions from members, and that the members have voting
privileges and representation on the governing board and
committees. Prior to marketing or offering any group disability
insurance to an association formed for the sole purpose of
obtaining insurance, the producer shall file a written report
with the department setting forth the name of the association,
the insurer and its address and the offering producer and his
address. The department shall keep the name of the association
confidential. The provisions of the Small Employer Health
Insurance Availability Act, W.S. 26-19-301 et seq., shall apply
to all insurance issued to an association under this section. As
used in this paragraph, "association" shall not include a
multiple employer welfare arrangement. The policy is subject to
the following requirements:
(A) The policy may insure one (1) or more of the
following or all of any class of the following for the benefit
of persons other than the employee's employer:
(I) Members of the association;
(II) Employees of the association; or
(III) Employees of members.
(B) If the covered person does not pay any part
of the premium for his insurance, the policy shall insure all
eligible persons, except those who reject the coverage in
writing.
(iii) A trust or the trustees of a fund established
or adopted by two (2) or more employers, by one (1) or more
labor unions or similar employee organizations, or by one (1) or
more employers and one (1) or more labor unions or similar
employee organizations, which trust or trustees are deemed the
policyholder, to insure employees of the employers or members of
the union or organization for the benefit of persons other than
the employers, unions or organizations, subject to the following
requirements:
(A) All employees of the employers, members of
the unions or organizations or any class of the employers, union
members or organization members are eligible for insurance under
the terms of the policy;
(B) The policy may provide that the term
"employees" shall include:
(I) The employees of one (1) or more
subsidiary corporations and the employees, individual
proprietors and partners of one (1) or more affiliated
corporations, proprietorships or partnerships if the business of
the employer and of the affiliated corporations, proprietorships
or partnerships is under common control;
(II) Retired or former employees;
(III) Directors of a corporate employer;
(IV) The trustees, trustees' employees, or
both, if their duties are principally connected with the
trusteeship.
(C) If the insured person does not pay any part
of the premium for his insurance, the policy shall insure all
eligible persons, except those who reject such coverage in
writing.
(iv) Under a policy issued to any person or
organization to which a policy of group life insurance may be
issued or delivered in this state to insure any class or classes
of individuals that could be insured under the group life
policy;
(v) Repealed by Laws 1990, ch. 5, § 3.
(vi) A creditor, a creditor's parent holding company
or a trustee or agent designated by two (2) or more creditors,
which creditor, holding company, affiliate, trustee or agent is
deemed the policyholder, to insure debtors of the creditor
concerning their indebtedness, subject to the following
requirements:
(A) All debtors or any class of debtors of the
creditor are eligible for insurance under the terms of the
policy;
(B) The policy may provide that the term
"debtors" shall include:
(I) Borrowers of money or purchasers or
lessees of goods, services or property for which payment is
arranged through a credit transaction;
(II) The debtors of one (1) or more
subsidiary corporations; and
(III) The debtors of one (1) or more
affiliated corporations, proprietorships or partnerships if the
business of the policyholder and of the affiliated corporations,
proprietorships or partnerships is under common control.
(C) If the insured debtor does not pay any part
of the premium for his insurance, the policy shall insure all
eligible debtors;
(D) The total amount of insurance payable for an
indebtedness shall not exceed the greater of the scheduled or
actual amount of unpaid indebtedness to the creditor. The
insurer may exclude any payments which are delinquent on the
date the debtor is disabled as defined in the policy;
(E) The insurance may be payable to the creditor
or any successor to the right, title and interest of the
creditor. The payment shall reduce or extinguish the unpaid
indebtedness of the debtor to the extent of the payment and any
excess of the insurance is payable to the insured or the estate
of the insured;
(F) Notwithstanding subparagraphs (A) through
(D) of this paragraph, insurance on agricultural credit
transaction commitments may be written up to the amount of the
loan commitment. Insurance on educational credit transaction
commitments may be written up to the amount of the loan
commitment less the amount of any repayments made on the loan.
(vii) A credit union or a trustee or agent designated
by two (2) or more credit unions, which credit union, trustee or
agent is deemed the policyholder, to insure members of the
credit union for the benefit of persons other than the credit
union, trustee, agent or any of their officials, subject to the
following requirements:
(A) All members or all of any class of members
of the credit union are eligible for insurance under the terms
of the policy;
(B) Policy premiums shall be paid by the
policyholder from the credit union's funds and shall insure all
eligible members.
(viii) A labor union or similar employee organization
which union or organization is deemed the policyholder, to
insure members of the union or organization for the benefit of
persons other than the union or organization or any of its
officials, representatives or agents, subject to the following
requirements:
(A) All members or any class of members of the
union or organization are eligible for insurance under the terms
of the policy;
(B) If the insured member does not pay any part
of the premium for his insurance, the policy shall insure all
eligible members, except those who reject such coverage in
writing.
(ix) A multiple employer welfare arrangement under
the jurisdiction of the department which:
(A) Is domiciled in Wyoming; or
(B) Maintains its principal place of business in
Wyoming.