Montana Code 33-20-1111. Dependents of employee and labor union groups — coverage
33-20-1111. Dependents of employee and labor union groups — coverage. Any group life policy issued under 33-20-1101, 33-20-1102, or 33-20-1103 may be extended to insure the employees or members against loss due to the death of their spouses and minor children, or any class or classes of employees, members, spouses, or minor children, subject to the following requirements:
Terms Used In Montana Code 33-20-1111
- Dependent: A person dependent for support upon another.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
(1)(a) The premium for the insurance must be paid by the policyholder from:
(i)the employer’s or union’s funds or funds contributed by the employer or union;
(ii)funds contributed by the insured employees or members; or
(iii)a combination of payors in subsections (1)(a)(i) and (1)(a)(ii).
(b)If no part of the premium is to be paid from funds contributed by the employees or members, all eligible employees or members, excluding any as to whose family members evidence of insurability is not satisfactory to the insurer, must be insured with respect to their spouses and children.
(2)The amounts of insurance must be based upon some plan precluding individual selection either by the employees or members or by the policyholder, employer, or union.
(3)(a) Upon termination of the insurance with respect to the members of the family of any employee or member by reason of the employee’s or member’s termination of employment, termination of membership in the class or classes eligible for coverage under the policy, or death, the spouse is entitled to have issued by the insurer, without evidence of insurability, an individual policy of life insurance, without disability or other supplementary benefits, providing application for the individual policy is made and the first premium is paid to the insurer within 31 days after the termination, subject to the requirements of 33-20-1209(1)(a) through (1)(c).
(b)(i) If the group policy terminates or is amended to terminate the insurance of any class of employees or members and the employee or member is entitled to have issued an individual policy under 33-20-1210, the spouse is also entitled to have issued by the insurer an individual policy, subject to the conditions and limitations provided above.
(ii)If the spouse dies within the period during which the spouse would have been entitled to have an individual policy issued in accordance with this provision, the amount of life insurance that the spouse would have been entitled to have issued under the individual policy must be payable as a claim under the group policy, whether or not application for the individual policy or the payment of the first premium for the individual policy has been made.
(4)Notwithstanding the provisions in 33-20-1208, only one certificate must be issued for delivery to an insured person if a statement concerning any dependent‘s coverage is included in the certificate.