Code of Maryland Regulations
Title 31 - MARYLAND INSURANCE ADMINISTRATION
Subtitle 09 - LIFE INSURANCE AND ANNUITIES
Chapter 31.09.04 - Contracts on a Variable Basis
Section 31.09.04.09 - Group Contracts

A. A contract issued to an employer providing a plan of retirement annuities for covered employees on the date of issue, the stipulated payments on the contract to be remitted by the employer and to be paid either wholly by the employer or jointly by the employer and the employees. The employees eligible under the contract shall be all of the employees of the employer, or all of any class or classes of employees determined by conditions pertaining to employment, but the contract may exclude classes of employees determined by age. The contract may provide that the term "employees" shall include the employees of one or more subsidiary corporations, and the employees, individual proprietors, and partners of one or more affiliated corporations, proprietors, or partnerships if the business of the employer and of the affiliated corporations, proprietors, or partnerships is under common control. The contract may provide that the term "employees" shall include the individual proprietor or partners if the employer is an individual proprietor or a partnership. A director of a corporate employer may not be eligible under the contract unless the person is otherwise eligible as a bona fide employee of the corporation by performing services other than the usual duties of a director. An individual proprietor or partner may not be eligible under the contract unless he is actively engaged in and devotes a substantial part of his time to the conduct of the business of the proprietor or partnership.

B. A contract issued to a labor union providing a plan of retirement annuities for at least 25 covered members on the date of issue, the stipulated payments under the contract to be remitted by the union and to be paid wholly from funds contributed by the union, or by the employer or employers of the persons covered, or by both, or partly from these funds and partly from funds contributed by members covered under the contract, but this contract may not require that the entire cost be derived from funds contributed by the insured members specifically for the stipulated payments under it. The members eligible under the contract shall be all of the members of the union or all of any specified class or classes of members determined by conditions pertaining to their employment, or to membership in the union, or to both, but the contract may exclude classes of members determined by age.

C. A contract issued to the trustees of a fund established by an employer or by two or more employers, or by an association of employers which has been in existence for at least 5 years (or with express approval of the Commissioner if less than 5 years), or by one or more labor unions, or by one or more employers and one or more labor unions, providing a plan of retirement annuities for all of the employees of the employer or employers, or all of the employees of the member employers of the association, or all of any class or classes of the employees determined by conditions pertaining to their employment, or all of the members of the union or unions, or all of any class or classes of members determined by conditions pertaining to their employment or to membership in the union, or to both, but the contract may exclude classes of employees or members determined by age. The contract may provide that the term "employees" shall include the individual proprietor or partners if an employer is an individual proprietor or a partnership. A director of a corporate employer may not be eligible under the contract unless the person is otherwise eligible as a bona fide employee of the corporation by performing services other than the usual duties of a director. An individual proprietor or partner may not be eligible under the contract unless he is actively engaged in and devotes a substantial part of his time to the conduct of the business of the proprietor or partnership. The contract may provide that the term "employees" shall include the trustees or their employees, or both, if their duties are principally connected with the trusteeship. The contract shall cover at least 100 persons at date of issue. The contract shall provide that the stipulated payments shall be remitted by the trustees and shall be paid wholly from funds contributed by the employer or employers of the persons covered, or by the union or unions, or by both, or partly from these funds and partly from funds contributed by the persons covered under the contract, but this contract may not require that the entire cost be derived from funds contributed by the covered persons specifically for the stipulated payments under it.

D. A contract issued to an association of persons having a common calling, occupation, or profession, which association was organized and maintained in good faith for purposes other than obtaining annuities and has been in existence for at least 5 years, or with express approval of the Commissioner if less than 5 years, or to the trustees of a fund established by the association, providing a plan of retirement annuities for all the members and employees of the association or all of any specified class or classes of the members and employees. The contract may provide that the terms "employees" or "members" shall include the trustees or their employees, or both, if their duties are principally connected with the trusteeship. The contract shall cover at least 100 persons at date of issue. The contract shall provide that the stipulated payments shall be remitted by the association or by the trustees and shall be paid wholly from funds contributed by the association, or partly from these funds and partly from funds contributed by the persons covered under the contract, or wholly from funds contributed specifically for that purpose by the persons covered under the contract.

E. A contract issued to one or more departments of any federal or state government, or their subdivisions, or of any state college or university, or to an association of persons employed in any such department, which association was organized and maintained in good faith for purposes other than obtaining annuities and has been in existence for at least 5 years, or with express approval of the Commissioner if less than 5 years, or to the trustees of a fund established by a department or association, providing a plan of retirement annuities for all of the employees of the department or all of the members of the association or all of any specified class or classes of employees or members. The contract may provide that the terms "employees" or "members" shall include the trustees or their employees, or both, if their duties are principally connected with the trusteeship. The contract shall cover at least 100 persons at date of issue. The contract shall provide that the stipulated payments shall be remitted by the department, association, or trustees and shall be paid wholly from funds contributed by the department or association, or partly from these funds and partly from funds contributed by the persons covered under the contract, or wholly from funds contributed specifically for that purpose by the persons covered under the contract.