Texas Insurance Code 1131.053 – Funds Established by Employers or Labor Unions
(a) A group life insurance policy that insures the employers’ employees or the unions’ members for the benefit of persons other than the employers or unions may be issued to the trustees of a fund established or adopted by two or more employers in the same industry or by one or more labor unions, by one or more employers in the same industry and one or more labor unions, or by one or more employers and one or more labor unions whose members are in the same or related occupations or trades.
(b) A policy to which this section applies may provide that “employee” includes:
(1) an individual proprietor or partner, if the employer is an individual proprietorship or partnership;
(2) a trustee, an employee of the trustee, or both, if the person‘s duties are principally connected with the trusteeship; or
(3) a retired employee.
Terms Used In Texas Insurance Code 1131.053
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Trustee: A person or institution holding and administering property in trust.
(c) The trustees are the policyholder under a policy to which this section applies.
(d) A policy may not be issued under this section to insure employees of:
(1) an employer whose eligibility to participate in the fund as an employer arises out of considerations directly related to the employer being a commercial correspondent or business client or patron of another employer, without regard to whether the other employer participates in the fund; or
(2) an employer that is not located in this state, unless:
(A) the majority of the employers whose employees are to be insured are located in this state; or
(B) the policy is issued to the trustees of a fund established or adopted by one or more labor unions.
(e) A policy to which this section applies is subject to Subchapter F.