{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-4101","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-4101","heading":"Classes of policies permitted - Eligibility - Premiums -","body":"Number insured - Amount of insurance.\n\nNo policy of group life insurance shall be delivered in this\n\nstate unless it conforms to one of the following descriptions:\n\n1. A policy issued to an employer, or to the trustees of a fund\n\nestablished by an employer, which employer or trustees shall be\n\ndeemed the policyholder, to insure employees of the employer for the\n\nbenefit of persons other than the employer, subject to the following\n\nrequirements:\n\na. The employees eligible for insurance under the policy\n\nshall be all of the employees of the employer, or all\n\nof any class or classes thereof determined by\n\nconditions pertaining to their employment. The policy\n\nmay provide that the term \"employees\" shall include\n\nthe employees of one or more subsidiary corporations,\n\nand the employees, individual proprietors and partners\n\nof one or more affiliated corporations, proprietors or\n\npartnerships if the business of the employer and of\n\nsuch affiliated corporations, proprietors or\n\npartnerships is under common control through stock\n\nownership or contract, or otherwise. The policy may\n\nprovide that the term \"employees\" shall include the\n\nindividual proprietor or partners if the employer is\n\nan individual proprietor or a partnership. The policy\n\nmay provide that the term \"employees\" shall include\n\nretired employees. No director of a corporate\n\nemployer shall be eligible for insurance under the\n\npolicy unless such a person is otherwise eligible as a\n\nbona fide employee of the corporation by performing\n\nservices other than the usual duties of a director.\n\nNo individual proprietor or partner shall be eligible\n\nfor insurance under the policy unless he is actively\n\nengaged in and devotes a substantial part of his time\n\nto the conduct of the business of the proprietor or\n\npartnership. The policy may provide that the term\n\n\"employees\" shall include the trustees or their\n\nemployees, or both, if their duties are principally\n\nconnected with such trusteeship. A policy issued to\n\ninsure the employees of a public body may provide that\n\nthe term \"employee\" shall include elected or appointed\n\nofficials.\n\nb. The premium for the policy shall be paid by the\n\npolicyholder, either wholly from the employer's funds\n\nor funds contributed by him, or partly from such funds\n\nand partly from funds contributed by the insured\n\nemployees, or from funds contributed wholly by the\n\ninsured employees. A policy on which no part of the\n\npremium is to be derived from funds contributed by the\n\ninsured employees must insure all eligible employees,\n\nor all except any as to whom evidence of insurability\n\nis not satisfactory to the insurer.\n\nc. The amounts of insurance under the policy must be\n\nbased upon some plan precluding individual selection\n\neither by the employees or by the employer or trustee;\n\n2. A policy issued to a creditor, who shall be deemed to be the\n\npolicyholder, to insure debtors of the creditor. Credit unions and\n\nassociations formed for the purpose of making loans to their members\n\nshall be deemed to be creditors within the meaning of this section.\n\nPolicies issued to a creditor to insure debtors of the creditor are\n\nsubject to the following requirements:\n\na. The debtors eligible for insurance under the policy\n\nshall be all of the debtors of the creditor or all of\n\nany class or classes thereof determined by conditions\n\npertaining to the indebtedness or to the purchase\n\ngiving rise to the indebtedness. The policy may\n\nprovide that the term \"debtors\" shall include the\n\ndebtors of one or more subsidiary corporations, and\n\nthe debtors of one or more affiliated corporations,\n\nproprietors or partnerships if the business of the\n\npolicyholder and of such affiliated corporations,\n\nproprietors or partnerships is under common control\n\nthrough stock ownership, contract or otherwise.\n\nb. The premium for the policy shall be paid by the\n\npolicyholder, either from the creditor's funds, or\ne or more subsidiary corporations, and\n\nthe debtors of one or more affiliated corporations,\n\nproprietors or partnerships if the business of the\n\npolicyholder and of such affiliated corporations,\n\nproprietors or partnerships is under common control\n\nthrough stock ownership, contract or otherwise.\n\nb. The premium for the policy shall be paid by the\n\npolicyholder, either from the creditor's funds, or\n\nfrom charges collected from the insured debtors, or\n\nfrom both. A policy on which part or all of the\n\npremium is to be derived from the collection from the\n\ninsured debtors of identifiable charges not required\n\nof uninsured debtors shall not include, in the class\n\nor classes of debtors eligible for insurance, debtors\n\nunder obligation outstanding at its date of issue\n\nwithout evidence of individual insurability unless at\n\nleast seventy-five percent (75%) of the then eligible\n\ndebtors elect to pay the required charges. A policy\n\non which no part of the premium is to be derived from\n\nthe collection of such identifiable charges must\n\ninsure all eligible debtors, or all except any as to\n\nwhom evidence of individual insurability is not\n\nsatisfactory to the insurer.\n\nc. The policy may be issued only if the group of eligible\n\ndebtors is then receiving new entrants at the rate of\n\nat least one hundred persons yearly, or may reasonably\n\nbe expected to receive at least one hundred new\n\nentrants during the first policy year, and only if the\n\npolicy reserves to the insurer the right to require\n\nevidence of individual insurability if less than\n\nseventy-five percent (75%) of the new entrants become\n\ninsured.\n\nd. The amount of insurance on the life of any debtor\n\nshall at no time exceed the amount owed by him which\n\nis repayable to the creditor, or One Hundred Thousand\n\nDollars ($100,000.00), whichever is less, provided\n\nfurther, no company licensed to do business in this\n\nstate shall issue in excess of One Hundred Thousand\n\nDollars ($100,000.00) group credit life insurance on\n\none individual in the State of Oklahoma.\n\ne. The insurance shall be payable to the policyholder.\n\nSuch payment shall reduce or extinguish the unpaid\n\nindebtedness of the debtor to the extent of such\n\npayment;\n\n3. A policy issued to a labor union, which shall be deemed the\n\npolicyholder, to insure members of such union for the benefit of\n\npersons other than the union or any of its officials,\n\nrepresentatives or agents, subject to the following requirements:\n\na. The members eligible for insurance under the policy\n\nshall be all of the members of the union, or all of\n\nany class or classes thereof determined by conditions\n\npertaining to their employment, or to membership in\n\nthe union, or both.\n\nb. The premium for the policy shall be paid by the\n\npolicyholder, either wholly from the union's funds, or\n\npartly from such funds and partly from funds\n\ncontributed by the insured members specifically for\n\ntheir insurance, or from funds contributed wholly by\n\nthe insured members. A policy on which no part of the\n\npremium is to be derived from funds contributed by the\n\ninsured members specifically for their insurance must\n\ninsure all eligible members or all except any as to\n\nwhom evidence of individual insurability is not\n\nsatisfactory to the insurer.\n\nc. The amount of insurance under the policy must be based\n\nupon some plan precluding individual selection either\n\nby the members or by the union;\n\n4. A policy issued to the trustees of a fund established in\n\nthis state by two or more employers in the same industry, provided a\n\nmajority of the employees to be insured of each employer are located\n\nwithin this state, or to the trustees of a fund established by one\n\nor more labor unions, or by one or more employers in the same\n\nindustry and one or more labor unions or by one or more employers\n\nand one or more labor unions whose members are in the same or\n\nrelated occupation or trades, or by an association of persons,\nded a\n\nmajority of the employees to be insured of each employer are located\n\nwithin this state, or to the trustees of a fund established by one\n\nor more labor unions, or by one or more employers in the same\n\nindustry and one or more labor unions or by one or more employers\n\nand one or more labor unions whose members are in the same or\n\nrelated occupation or trades, or by an association of persons,\n\nlicensed by the State of Oklahoma to engage in a recognized\n\nprofession, which trustees shall be deemed the policyholder to\n\ninsure employees of the employers or members of the unions or\n\nmembers of an association of persons, licensed by the State of\n\nOklahoma to engage in a recognized profession, for the benefit of\n\npersons other than the employers or the unions, or the association\n\nof persons, licensed by the State of Oklahoma to engage in a\n\nrecognized profession, subject to the following requirements:\n\na. The persons eligible for insurance shall be all of the\n\nemployees of the employers or all of the members of\n\nthe union, or all the members of an association of\n\npersons, licensed by the State of Oklahoma to engage\n\nin a recognized profession, or all of any class or\n\nclasses thereof determined by conditions pertaining to\n\ntheir employment, or to membership in the unions, or\n\nto both, or pertaining to membership in the\n\nassociation of persons, licensed by the State of\n\nOklahoma to engage in a recognized profession. The\n\npolicy may provide that the term \"employees\" shall\n\ninclude the individual proprietor or partners if any\n\nemployer is an individual proprietor or a partnership.\n\nThe policy may provide that the term \"employees\" shall\n\ninclude retired employees. No director of a corporate\n\nemployer shall be eligible for insurance under the\n\npolicy unless such person is otherwise eligible as a\n\nbona fide employee of the corporation by performing\n\nservices other than the usual duties of a director.\n\nNo individual proprietor or a partner shall be\n\neligible for insurance under the policy unless he is\n\nactively engaged in and devotes a substantial part of\n\nhis time to the conduct of the business of the\n\nproprietor or partnership. The policy may provide\n\nthat the term \"employees\" shall include the trustees\n\nor their employees, or both if their duties are\n\nprincipally connected with such trusteeship, and that\n\nthe term \"members of an association\" shall include\n\nemployees of members.\n\nb. The premium for the policy shall be paid by the\n\ntrustees wholly from funds contributed by the employer\n\nor employers of the insured persons, or by the union\n\nor unions, or by both, or by an association of\n\npersons, licensed by the State of Oklahoma to engage\n\nin a recognized profession, or from funds contributed\n\nwholly or in part by the insured persons. A policy on\n\nwhich no part of the premium is to be derived from\n\nfunds contributed by the insured persons specifically\n\nfor their insurance must insure all eligible persons,\n\nor all except any as to whom evidence of individual\n\ninsurability is not satisfactory to the insurer.\n\nc. The policy must cover at date of issue at least one\n\nhundred persons; and if the fund is established by the\n\nmembers of an association of employers the policy may\n\nbe issued only if (a) either (i) the participating\n\nemployers constitute at date of issue at least sixty\n\npercent (60%) of those employer members whose\n\nemployees are not already covered by group life\n\ninsurance or (ii) the total number of persons covered\n\nat date of issue exceeds six hundred; and (b) the\n\npolicy shall not require that if a participating\n\nemployer discontinues membership in the association,\n\nthe insurance of his employees shall cease solely by\n\nreason of such discontinuance.\n\nd. The amounts of insurance under the policy must be\n\nbased upon some plan precluding individual selection\n\neither by the insured persons or by the policyholder,\ndate of issue exceeds six hundred; and (b) the\n\npolicy shall not require that if a participating\n\nemployer discontinues membership in the association,\n\nthe insurance of his employees shall cease solely by\n\nreason of such discontinuance.\n\nd. The amounts of insurance under the policy must be\n\nbased upon some plan precluding individual selection\n\neither by the insured persons or by the policyholder,\n\nemployers, or unions;\n\n5. A policy issued to any nonprofit industrial association to\n\ninsure the executives of employer members of a nonprofit industrial\n\nassociation, which is now and has been actively functioning for a\n\nperiod of not less than ten (10) years, such policy to be issued to\n\nsuch association which shall be deemed to be the employer for the\n\npurposes of this article, or to the association and executives of\n\nsuch employer members jointly and insuring only all of such\n\nexecutives for amounts of insurance based upon some plan which will\n\npreclude individual selection, for the benefit of persons other than\n\nsuch association, and the premium on which shall be paid by the\n\nemployer members or the employer members and the executives of such\n\nemployer members jointly;\n\n6. A policy issued to a credit union which shall be deemed the\n\npolicyholder, to insure eligible members for the benefit of someone\n\nother than the credit union or its officials and subject to the\n\nfollowing requirements:\n\na. The members eligible for insurance under the policy\n\nshall be all the members of the credit union or all of\n\nany class or classes thereof.\n\nb. The premiums for the policy shall be paid by the\n\npolicyholder, either wholly from the credit union's\n\nfunds, or partly from such funds and partly from funds\n\ncontributed by the insured members specifically for\n\ntheir insurance. A policy on which no part of the\n\npremium is to be derived from funds contributed by the\n\ninsured members specifically for their insurance must\n\ninsure all eligible members or all except any as to\n\nwhom evidence of individual insurability is not\n\nsatisfactory to the insurer.\n\nc. The amount of insurance under the policy may be based\n\non the amount of the member's savings in the credit\n\nunion or upon some other plan precluding individual\n\nselection either by the members or by the credit\n\nunion;\n\n7. A policy issued to a charitable, benevolent, educational or\n\nreligious institution, or their agencies, to insure the members\n\nthereof for the purpose set forth in subsection D of Section 3604 of\n\nthis title;\n\n8. A policy issued to an alumni association of an institution\n\nof higher education accredited by the Oklahoma State Regents for\n\nHigher Education, to insure the members thereof for the purpose set\n\nforth in subsection E of Section 3604 of this title;\n\n9. A policy to an association, which has a constitution and\n\nbylaws and which has been organized and is maintained in good faith\n\nfor purposes other than that of obtaining insurance, that insures at\n\nleast ten members, employees, or employees of members of the\n\nassociation or its officers or trustees. The term “employees” as\n\nused in this paragraph shall include retired employees.\n\n“Association” means, with respect to life insurance coverage\n\noffered, an association which:\n\na. has been actively in existence for at least five (5)\n\nyears,\n\nb. has been formed and maintained in good faith for\n\npurposes other than obtaining insurance,\n\nc. does not condition membership in the association on\n\nany health status-related factor relating to an\n\nindividual, including an employee of an employer or a\n\ndependent of an employee or association member,\n\nd. makes life insurance coverage offered through the\n\nassociation available to all members regardless of any\n\nhealth status-related factor relating to such member\n\nor individuals eligible for coverage through a member,\n\ne. does not make life insurance coverage offered through\n\nthe association available other than in connection\ne of an employer or a\n\ndependent of an employee or association member,\n\nd. makes life insurance coverage offered through the\n\nassociation available to all members regardless of any\n\nhealth status-related factor relating to such member\n\nor individuals eligible for coverage through a member,\n\ne. does not make life insurance coverage offered through\n\nthe association available other than in connection\n\nwith a member of the association, and\n\nf. meets such additional requirements as may be imposed\n\nunder state law;\n\n10. A policy issued to cover any other group subject to the\n\nfollowing requirements:\n\na. no such group life insurance policy shall be delivered\n\nin this state unless the Commissioner of Insurance\n\nfinds that:\n\n(1) the issuance of such group policy is not contrary\n\nto the best interest of the public,\n\n(2) the issuance of the group policy would result in\n\neconomies of acquisition or administration, and\n\n(3) the benefits are reasonable in relation to the\n\npremiums charged, and\n\nb. the premium for the policy shall be paid either from\n\nthe policyholder’s funds or from funds contributed by\n\nthe covered person or from both; or\n\n11. A policy issued to cover any other substantially similar\n\ngroup which, in the discretion of the Insurance Commissioner, may be\n\nsubject to the issuance of a group life policy or contract.","path":["OK Code","Title 36"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os36.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"6a5544281756c1dea2cefce26420ba59c31cb42b16eeea0a4e9e8186fd6d03cb","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-4082","next":"us-ok/okla.-stat.-tit.-36-36-4101.1"},"notice":"GroundRules: Original legal text. Not legal advice."}