Title 17. Group Life Insurance — Subtitle 2. Group Policy Requirements
Statutes in effect as of October 1, 2026.
Md. Code Ann., Ins. § 17-201 (2026)
Title 17. Group Life Insurance
Subtitle 2. Group Policy Requirements
§ 17–201LinkCopy Citation
(a)
Subject to the requirements of this section, a policy may be issued to an employer, or to the trustees of a fund established by an employer, in which the employer or trustees shall be deemed the policyholder, to insure employees of the employer for the benefit of persons other than the employer.
(b)
(1)
The employees eligible for insurance under the policy shall be all of the employees of the employer, or all of any class or classes of employees.
(2)
The policy may provide that the term “employees” shall include:
(i)
the employees of one or more subsidiary corporations, and the employees, individual proprietors, and partners of one or more affiliated corporations, proprietorships, or partnerships if the business of the employer and of the affiliated corporations, proprietorships, or partnerships is under common control; and
(ii)
the individual proprietor or partners if the employer is an individual proprietorship or partnership.
(3)
The policy may provide that the term “employees” may include retired employees, former employees, and directors of a corporate employer.
(4)
A policy issued to insure the employees of a public body may provide that the term “employees” shall include elected or appointed officials.
(c)
(1)
The premium for the policy shall be paid either from the employer’s funds, or from funds contributed by the insured employees, or from both.
(2)
Except as provided in paragraph (3) of this subsection, a policy on which no part of the premium is to be derived from funds contributed by the insured employees must insure all eligible employees, except those who reject the coverage in writing.
(3)
An insurer may exclude or limit the coverage on any person as to whom evidence of individual insurability is not satisfactory to the insurer.
Md. Code Ann., Ins. § 17-202 (2026)
Title 17. Group Life Insurance
Subtitle 2. Group Policy Requirements
§ 17–202LinkCopy Citation
(a)
Subject to the requirements of this section, a policy may be issued to a labor union, or similar employee organization, which shall be deemed to be the policyholder, to insure members of the union or organization for the benefit of persons other than the union or organization or any of its officials, representatives, or agents.
(b)
The members eligible for insurance under the policy shall be all of the members of the union or organization, or all of any class or classes of members.
(c)
(1)
The premium for the policy shall be paid either from funds of the union or organization, or from funds contributed by the insured members specifically for their insurance, or from both.
(2)
Except as provided in paragraph (3) of this subsection, a policy on which no part of the premium is to be derived from funds contributed by the insured members specifically for their insurance must insure all eligible members, except those who reject the coverage in writing.
(3)
An insurer may exclude or limit the coverage on any person as to whom evidence of individual insurability is not satisfactory to the insurer.
Md. Code Ann., Ins. § 17-203 (2026)
Title 17. Group Life Insurance
Subtitle 2. Group Policy Requirements
§ 17–203LinkCopy Citation
(a)
Subject to the requirements of this section, a policy may be issued to a trust or to the trustees of a fund established or adopted by two or more employers, or by one or more labor unions or similar employee organizations, or by one or more employers and one or more labor unions or similar employee organizations, which trust or trustees shall be deemed the policyholder, to insure employees of the employers or members of the unions or organizations for the benefit of persons other than the employers or the unions or organizations.
(b)
(1)
The persons eligible for insurance shall be all of the employees of the employers or all of the members of the unions or organizations, or all of any class or classes of employees or members.
(2)
The policy may provide that the term “employees” shall include:
(i)
the employees of one or more subsidiary corporations, and the employees, individual proprietors, and partners of one or more affiliated corporations, proprietorships, or partnerships if the business of the employer and of the affiliated corporations, proprietorships, or partnerships is under common control;
(ii)
the individual proprietor or partners if the employer is an individual proprietorship or partnership;
(iii)
retired employees, former employees, and directors of a corporate employer; and
(iv)
trustees or their employees, or both, if their duties are principally connected with the trusteeship.
(c)
(1)
The premium for the policy shall be paid from funds contributed by the employer or employers of the insured persons, or by the union or unions or similar employee organizations, or by both, or from funds contributed by the insured persons or from both the insured persons and the employers or unions or similar employee organizations.
(2)
Except as provided in paragraph (3) of this subsection, a policy on which no part of the premium is to be derived from funds contributed by the insured persons specifically for their insurance must insure all eligible persons, except those who reject the coverage in writing.
(3)
An insurer may exclude or limit the coverage on any person as to whom evidence of individual insurability is not satisfactory to the insurer.
Md. Code Ann., Ins. § 17-204 (2026)
Title 17. Group Life Insurance
Subtitle 2. Group Policy Requirements
§ 17–204LinkCopy Citation
(a)
(1)
Subject to the requirements of this section, a policy may be issued to an association or to a trust or to the trustees of a fund established, created, or maintained for the benefit of members of one or more associations.
(2)
The association or associations:
(i)
shall have at the outset a minimum of 100 persons;
(ii)
shall have been organized and maintained in good faith for purposes other than that of obtaining insurance;
(iii)
shall have been in active existence for at least 2 years; and
(iv)
shall have a constitution and bylaws that provide that:
(1)
the association or associations hold regular meetings not less than annually to further purposes of the members;
(2)
except for credit unions, the association or associations collect dues or solicit contributions from members; and
(3)
the members have voting privileges and representation on the governing board and committees.
(b)
The policy may insure members of the association or associations, employees of the association or associations, or employees of members, or one or more of the preceding or all of any class or classes of members or employees for the benefit of persons other than the employee’s employer.
(c)
(1)
The premium for the policy shall be paid from funds contributed by the association or associations, or by employer members, or by both, or from funds contributed by the covered persons or from both the covered persons and the association, associations, or employer members.
(2)
Except as provided in paragraph (3) of this subsection, a policy on which no part of the premium is to be derived from funds contributed by the covered persons specifically for the insurance must insure all eligible persons, except those who reject the coverage in writing.
(3)
An insurer may exclude or limit the coverage on any person as to whom evidence of individual insurability is not satisfactory to the insurer.
Md. Code Ann., Ins. § 17-205 (2026)
Title 17. Group Life Insurance
Subtitle 2. Group Policy Requirements
§ 17–205LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
“Public employees association” means an association of federal, State, county, or municipal corporation employees.
(3)
“Public employer” means a county, municipal corporation, association of counties or municipal corporations, State college or university, or unit of State, county, or municipal corporation government.
(b)
(1)
Subject to the requirements of this section, the lives of a group of individuals may be insured under a policy issued to a public employer or public employees association to cover employees of the public employer or members of the public employees association for the benefit of persons other than the public employer or public employees association.
(2)
The public employer or public employees association to which the policy is issued is deemed the policyholder.
(c)
(1)
All employees of the public employer, all members of the public employees association, or all of any class or classes of employees or members determined by conditions pertaining to their employment or membership in the public employees association or both are eligible for insurance under a policy issued in accordance with this section.
(2)
A policy issued to insure employees of a public employer may provide that the term “employee” includes:
(i)
a retired employee; and
(ii)
an elected or appointed official.
(d)
(1)
The premium for the policy shall be paid from funds contributed by the public employer or public employees association, or by both, or from funds contributed by the covered persons or from both the covered persons and the public employer or public employees association.
(2)
Except as provided in paragraph (3) of this subsection, a policy on which no part of the premium is to be derived from funds contributed by the covered persons specifically for the insurance must insure all eligible persons, except those who reject the coverage in writing.
(3)
An insurer may exclude or limit the coverage on any person as to whom evidence of individual insurability is not satisfactory to the insurer.
(4)
A public employer may require written authorization from an employee to deduct from the employee’s salary the required contributions for the premium.
Md. Code Ann., Ins. § 17-206 (2026)
Title 17. Group Life Insurance
Subtitle 2. Group Policy Requirements
§ 17–206LinkCopy Citation
(a)
Subject to the requirements of this section, a policy may be issued to a creditor or its parent holding company or to a trustee or trustees or agent designated by two or more creditors, which creditor, holding company, affiliate, trustee, trustees, or agent shall be deemed the policyholder, to insure debtors of the creditor, or creditors.
(b)
(1)
The debtors eligible for insurance under the policy shall be all of the debtors of the creditor or creditors, or all of any class or classes of debtors.
(2)
The policy may provide that the term “debtors” shall include:
(i)
borrowers of money or purchasers or lessees of goods, services, or property for which payment is arranged through a credit transaction;
(ii)
the debtors of one or more subsidiary corporations; and
(iii)
the debtors of one or more affiliated corporations, proprietorships, or partnerships if the business of the policyholder and of the affiliated corporations, proprietorships, or partnerships is under common control.
(c)
(1)
The premium for the policy shall be paid either from the creditor’s funds, or from charges collected from the insured debtors, or from both.
(2)
Except as provided in paragraph (3) of this subsection, a policy on which no part of the premium is to be derived from the funds contributed by insured debtors specifically for their insurance must insure all eligible debtors.
(3)
An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer.
(d)
(1)
The amount of insurance on the life of any debtor shall at no time exceed the greater of the scheduled or actual amount of unpaid indebtedness to the creditor.
(2)
(i)
The insurance may be payable to the creditor or any successor to the right, title, and interest of the creditor.
(ii)
The payment shall reduce or extinguish the unpaid indebtedness of the debtor to the extent of the payment and any excess of the insurance shall be payable to the beneficiary named by the insured other than the creditor or to the estate of the insured.
(3)
Notwithstanding the provisions of paragraphs (1) and (2) of this subsection:
(i)
insurance on agricultural credit transaction commitments not exceeding a term of 1 year may be written up to the amount of the loan commitment on a nondecreasing or level term plan; and
(ii)
insurance on educational credit transaction commitments may be written up to the amount of the loan commitment less the amount of any repayments made on the loan.
Md. Code Ann., Ins. § 17-207 (2026)
Title 17. Group Life Insurance
Subtitle 2. Group Policy Requirements
§ 17–207LinkCopy Citation
(a)
(1)
Subject to the requirements of this section, the lives of a group of individuals may be insured under a policy issued to a credit union organized in accordance with State law or the Federal Credit Union Act to cover members of the credit union for the benefit of persons other than the credit union or its officials.
(2)
The credit union to which the policy is issued is deemed the policyholder.
(b)
All members of the credit union, or all of any class or classes of members determined by conditions pertaining to their age or membership in the credit union or both, are eligible for insurance under a policy issued in accordance with this section.
(c)
(1)
The premiums for the policy shall be paid from funds contributed by the credit union or insured members, or by both.
(2)
Except as provided in paragraph (3) of this subsection, a policy on which no part of the premium is to be derived from funds contributed by the insured member for the insurer must insure all eligible persons, except those who reject the coverage in writing.
(3)
An insurer may exclude or limit the coverage on any persons as to whom evidence of individual insurability is not satisfactory to the insurer.
Md. Code Ann., Ins. § 17-208 (2026)
Title 17. Group Life Insurance
Subtitle 2. Group Policy Requirements
§ 17–208LinkCopy Citation
(a)
(1)
Subject to the requirements of this section, the lives of a group of individuals may be insured under a policy issued to a volunteer fire, rescue squad, or ambulance service organization to cover the registered members of the organization for the benefit of persons other than the organization.
(2)
The volunteer fire, rescue squad, or ambulance service organization to which the policy is issued is deemed the policyholder.
(b)
All registered members of a volunteer fire, rescue squad, or ambulance service organization are eligible for insurance under a policy issued in accordance with this section.
(c)
(1)
The premiums for the policy shall be paid from funds contributed by the volunteer fire, rescue squad, or ambulance service organization or funds contributed by the insured members or from both.
(2)
Except as provided in paragraph (3) of this subsection, a policy on which no part of the premium is to be derived from funds contributed by the insured member specifically for the insurance must insure all eligible persons, except those who reject the coverage in writing.
(3)
An insurer may exclude or limit the coverage on any person as to whom evidence of individual insurability is not satisfactory to the insurer.
Md. Code Ann., Ins. § 17-209 (2026)
Title 17. Group Life Insurance
Subtitle 2. Group Policy Requirements
§ 17–209LinkCopy Citation
(a)
(1)
Insurance under a policy of group life insurance issued in accordance with §§ 17–201 through 17–205 of this subtitle may be extended to cover the spouse, domestic partner, or dependent children of each insured employee or member who elects to obtain the coverage.
(2)
The policy may provide that the term “dependent children” includes:
(i)
an insured employee’s or member’s child under 18 years of age; and
(ii)
an insured employee’s or member’s child 18 years of age or older who attends an educational institution and relies on the insured employee or member for financial support.
(3)
The term “domestic partner” has the meaning stated in the policy.
(4)
The insurance on the life of a spouse, domestic partner, or child may not exceed the amount of the insurance on the life of the insured employee or member.
(b)
The policyholder shall pay the premium for the insurance on the spouse, domestic partner, or child:
(1)
wholly from the funds of the policyholder or funds contributed by the policyholder;
(2)
wholly from funds contributed by the insured employees or members; or
(3)
partly from the funds of the policyholder or funds contributed by the policyholder and partly from funds contributed by the insured employees or members.
(c)
A spouse, domestic partner, or dependent child insured under this section is entitled to:
(1)
the rights of conversion under § 17–309 of this title, if employment of the employee or membership in the class or classes eligible for insurance under the policy is terminated; and
(2)
the rights of conversion under § 17–310 of this title, if the policy of group life insurance terminates or is amended to terminate the insurance of the spouse, domestic partner, or dependent child.
(d)
Notwithstanding § 17–308 of this title, only one certificate must be issued for each family unit if a statement about a dependent’s coverage is included in the certificate.