HB1058: HB1058 Insurance; authorize tax-exempt organizations to be beneficiaries of employee group life insurance policies

26 LC 44 3439S The House Committee on Insurance offers the following substitute to HB 1058: A BILL TO BE ENTITLED AN ACT To amend Chapter 27 of Title 33 of the Official Code of Georgia Annotated, relating to1 group life insurance, so as to authorize tax-exempt organizatio ns to be beneficiaries of2 employee group life insurance policies; to provide for related matters; to repeal conflicting3 laws; and for other purposes.4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:5 SECTION 1.6 Chapter 27 of Title 33 of the Official Code of Georgia Annotate d, relating to group life7 insurance, is amended in Code Section 33-27-1, relating to group requirements generally, by8 revising paragraph (1) as follows: 9 "(1) Employee groups. A policy issued to an employer or to the trustees of a fund10 established by an employer, which employer or trustee shall be deemed the policyholder,11 to insure employees of the employer for the benefit of persons other than the employer12 unless the employer both qualifies as a tax-exempt organization under Section 501(c)(3)13 of the Internal Revenue Code and is designated as a beneficiary under such policy in14 writing by the insured employee, subject to the following requirements:15 H. B. 1058 (SUB) - 1 - 26 LC 44 3439S (A) The employees eligible for insurance under the policy shall be all of the employees16 of the employer or all of any class or classes thereof determin ed by conditions17 pertaining to their employment. The policy may provide that the term 'employees' shall18 include the employees of one or more subsidiary corporations an d the employees,19 individual proprietors, and partners of one or more affiliated corporations, proprietors,20 or partnerships, if the business of the employer and of such af filiated corporations,21 proprietors, or partnerships is under common control through st ock ownership or22 contract or otherwise. The policy may provide that the term 'employees' shall include23 the individual proprietor or partners if the employer is an ind ividual proprietor or a24 partnership. The policy may provide that the term 'employees' shall include retired25 employees. No individual proprietor or partner shall be eligible for insurance under the26 policy unless he or she is actively engaged in and devotes a substantial part of his or her27 time to the conduct of the business of the proprietor or partnership. A policy issued to28 insure the employees of a public body may provide that the term 'employees' shall29 include elected or appointed officials;30 (B) The premium for the policy shall be paid by the policyhold er either from the31 employer's own funds or from charges collected from the insured employee specifically32 for such insurance or from funds contributed by both the employer and the employee. 33 A policy in which no part of the premium is to be derived from funds contributed by34 the insured employee must s h a l l insure each eligible employee, except for any35 employee as to whom evidence of individual insurability is not satisfactory to the36 insurer;37 (C) The policy must shall cover at least two employees at date of issue; and38 (D) The amounts of insurance under the policy must shall be based upon some plan39 precluding individual selection either by the employees or by the employer or trustee."40 H. B. 1058 (SUB) - 2 - 26 LC 44 3439S SECTION 2.41 All laws and parts of laws in conflict with this Act are repealed.42 H. B. 1058 (SUB) - 3 -