N.J.S.A 17:48C-16 Group contract; benefits; “employees” defined.

17:48C-16 Group contract; benefits; “employees” defined.

16. A dental service corporation may also issue to a policyholder a group contract, covering at least one employee other than a proprietor, a partner in a partnership or a shareholder that owns more than two percent of the shares of a Subchapter S corporation, or at least 10 members of any other eligible group, as well as immediate family members of those individuals at the date of issue, if it conforms to the following description:

(a) A contract issued to an employer or to the trustees of a fund established by one or more employers, or issued to a labor union, or issued to an association formed for purposes other than obtaining such contract, or issued to the trustees of a fund established by one or more labor unions or by one or more employers and one or more labor unions, covering employees and members of associations or labor unionS.

(b) A contract issued to cover any other group which the commissioner determines may be covered in accordance with sound underwriting principleS.

Benefits may be provided for one or more members of the families or one or more dependents of persons who may be covered under a group contract referred to in (a) or (b) above.

The contract may provide that the term “employees” shall include as employees of a single employer the employees of one or more subsidiary corporations and the employees, individual proprietors and partners of affiliated corporations, proprietorships and partnerships if the business of the employer and such corporations, proprietorships or partnerships is under common control through stock ownership, contract or otherwise. The contract may provide that the term “employees” shall include the individual proprietor or partners of an individual proprietorship or a partnership. The contract may provide that the term “employees” shall include retired employeeS.A contract issued to trustees may provide that the term “employees” shall include the trustees or their employees, or both, if their duties are principally connected with such trusteeship. A contract issued to the trustees of a fund established by the members of an association of employers may provide that the term “employees” shall include the employees of the association.

L.1968, C. 305, S.16; amended 2015, C. 148, S.6.

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