An Act to amend the Life Insurance Act of the District of Columbia approved June 19, 1934, as amended by the acts of July 2, 1940, and July 12, 1950
PL 86-579 (H.R.1844), enacted 07/05/1960

74 S T A T . ] 
PUBLIC LAW 86.579-JULY 5, 1960 
315 
Public Law 86-579 
AN ACT 
To amend the "Life Insurance Act" of the District of Columbia approved June 19, 
1934, as amended by the Acts of July 2, 1940, and July 12, 1950. 
July 5, I960 
[H. R. 1844] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That section 10(1) 
of chapter V of the Life Insurance Act, as amended (sec. 35-710(1), 
D.C. Code, 1951 edition), is amended (1) by striking out "twenty-five 
employees" in subsection (c) thereof, and inserting in lieu thereof 
"ten employees"', and (2) by striking out the period at the end of 
subsection (d) thereof and adding the following: "unless 150 per 
centum of the annual compensation of a covered employee, exceeds 
$20,000, in which event all such insurance shall not exceed $40,000, 
or 150 per centum of such annual compensation, whichever is less." 
SEC. 2. Section 10(3) of chapter V of the Life Insurance Act, as 
amended (sec. 35-710(3), D.C. Code, 1951 edition), is amended (1) 
by striking out the words "twenty-five members" in subsection (c) 
thereof and inserting in lieu thereof "ten members", and (2) by delet-
ing "issued to the union" in the second sentence of subsection (d), 
and (3) by striking out the period at the end of subsection (d) thereof 
and adding the following: "unless 150 per centum of the annual com-
pensation of a covered union member exceeds $20,000, in which event 
all such insurance shall not exceed $40,000, or 150 per centum of such 
annual compensation, whichever is less." 
SEC. 3. Section 10(4) of chapter V of the Life Insurance Act, as 
amended (sec. 35-710(4), D.C. Code, 1951 edition), is amended by 
striking out the period at the end of subsection (d) thereof and add-
ing the following: "unless 150 per centum of the annual compensation 
of a covered person exceeds $20,000, in which event all such insurance 
shall not exceed $40,000, or 150 per centum of such annual compen-
sation, whichever is less." 
SEC. 4. Section 10(5) of chapter V of the Life Insurance Act, as 
amended (sec. 35-710(5), D.C. Code, 1951 edition), is amended by 
striking out "fifty employees" and inserting in lieu thereof, "ten 
employees." 
SEC. 5. Section 10 (generally) of chapter V of the Life Insurance 
Act, as amended (sec. 35-710, D.C. Code, 1951 edition), is amended 
by adding the following two new subsections, subsections 6 and 7: 
"(6) A policy issued to an association whose eligible members have 
the same profession, trade, or occupation which has been organized 
and is maintained for purposes other than th^^t of obtaining insur-
ance, which shall be deemed the policyholder, to insure members, or 
employees of members, of such association for the benefit of persons 
other than the association, or any of its officials, representatives, or 
agents, subject to the following requirements: 
"(a) The members or employees eligible for insurance under the 
policy shall be all the members, and all the employees of the members, 
of the association, or all of any class or classes thereof determined by 
conditions pertaining to their employment, or to membership in the 
association, or both. 
"(b) The premium for the policy shall be paid by the policyholder 
either wholly from the association's funds, or partly from such 
funds and partly from funds contributed by tne insured mem-
bers or employees specifically for their insurance, or from funds 
wholly contributed by the insured members or employees specifically 
L i f e 
Insurance 
Act, D. C. 
Group coverage. 
64 Stat. 330. 
Issuance to pro-
fessional or trade 
associations. 
N o n d iscrimins 
tory basis. 
Payment of pre-
miums. 
316 
PUBLIC LAW 86.579-JULY 5, 1960 
[74 ST A T . 
Minimum 
mem 
b e r s h i p require-
ment. 
Policy selection 
and amount, limi-
tation. 
E x t e n s i o n 
of 
coverage. 
Payment of pre-
miums. 
Maximum 
ance. 
insur-
C o n v e r s i o n 
rights. 
Exception. 
for their insurance. A policy on which any part or all of the pre-
mium is to be derived from funds contributed by the insured members 
or employees specifically for their insurance may be placed in force 
only if at least 60 per centum of the then eligible members or 
employees or a minimum of four hundred members or employees, 
whichever is less, excluding any as to whom evidence of individual 
insurability is not satisfactory to the insurer, elect to make the 
required contributions. 
A policy on which no part of the premium is 
to be derived from funds contributed by the insured members or 
employees specifically for their insurance must insure all eligible 
members or employees^ or all except any as to whom evidence of 
individual insurability is not satisfactory to the insurer. 
"(c) The policy must cover at least twenty-five members or 
employees at date of issuance. 
"(d) The amounts of insurance under the policy must be based on 
some plan precluding individual selection eitner by the members or 
employees, or by the association. 
No policy may be issued which 
provides term insurance on any association member or employee which, 
together with any other term insurance under any group life insurance 
policy or policies, exceeds $20,000, unless 150 per centum of the annual 
compensation of such person exceeds $20,000, in which event all such 
term insurance shall not exceed $40,000, or 150 per centum of such 
annual compensation, whichever is less. 
"(7) Any policy issued pursuant to this section, except a policy 
issued to a creditor pursuant to subsection (2) hereof, may be extended 
to insure the spouses and minor children of insured persons, or any 
class or classes thereof, subject to the following requirements: 
"(a) The premiums for the insurance shall be paid by the policy-
holder either from the policyholder's funds or from funds contributed 
by the insured person, or from both. 
If any part of the premium is 
to be derived from funds contributed by the insured persons, the insur-
ance with respect to spouses and children may be placed in force only 
if at least 75 per centum of the then eligible employees or association 
members, excluding any as to whose family members evidence of 
insurability is not satisfactory to the insurer, elect to make the required 
contribution. 
If no part of the premium is to be derived from funds 
contributed by the insured persons, all such eligible employees or 
association members, excluding any as to whose family members evi-
dence of insurability is not satisfactory to the insurer, must be insured 
with respect to their spouses and children. 
"(b) The amounts of insurance under the policy must be based upon 
some plan precluding individual selection either by the insured per-
sons or by the policyholder, and shall not exceed with respect to any 
spouse or child, 50 per centum of the insurance on the life of such 
insured person. 
"(c) Upon termination of the insurance with respect to the spouse 
of any insured person by reason of such person^s termination of 
employment or membership or death, the spouse insured pursuant 
to this section shall have the same conversion rights as to the insur-
ance on his or her life as is provided for the insured person under 
section 11. 
"(d) Notwithstanding the provisions of section 11, only one certifi-
cate need be issued for delivery to an insured person if a statement 
concerning any dependent's coverage is included in such certificate." 
Approved July 5, 1960.