(a) A group life insurance policy may not be issued for delivery in this state unless the group is a bona fide association or the group was formed for purposes other than obtaining insurance or is a trust established, adopted, or participated in by one or more employers or labor unions or by one or more employers and labor unions, and
(1) the policy covers at least two individuals at the date of issue;
(2) an individual eligible for coverage is subject to uniformly applied standards of insurability as may be imposed by the insurer;
(3) amounts of group life insurance are determined based on some plan that will preclude individual selection;
(4) the group life insurance policy is in compliance with the other applicable provisions of this chapter; and
(5) the group meets other requirements established by the director in regulation.
(b) This section does not apply to life insurance policies
(1) insuring only individuals related by blood, marriage, or legal adoption;
(2) insuring only individuals having a common interest through ownership of a business enterprise, or a substantial legal interest or equity in a business enterprise, and who are actively engaged in its management; or
(3) insuring only individuals otherwise having an insurable interest in each other's lives.
(c) Insurance under a group life insurance policy may be extended to insure dependents. Notwithstanding AS 21.48.170, only one certificate need be issued for delivery to an insured person if a statement concerning a dependent's coverage is included in the certificate.
(d) In this section, “dependents” means the spouse and dependent children of an employee or member of the group.
(e) A group life insurance policy may be issued to a group that does not meet one or more of the requirements under (a) of this section only if the director finds that issuance
(1) is in the best interests of the public;
(2) results in economies of acquisition or administration; and
(3) meets other requirements established by the director in regulation.
(f) An insurer shall submit to the director information satisfactory to the director that the group meets the requirements of (a) or (e) of this section, and the director must affirmatively approve of the group before an insurer may issue a group life policy to a group under (a) or (e) of this section.
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