Sec 20-1251. Requirements for group contracts

A. Except as provided in subsection C of this section, no life insurance policy shall be delivered in this state insuring the lives of more than one individual unless to one of the groups as provided for in section 20-1251.01 and sections 20-1252 through 20-1256 and unless in compliance with the other applicable provisions of those sections.

B. Subsection A of this section shall not apply to life insurance policies:

1. Insuring only individuals related by marriage, blood or legal adoption.

2. Insuring only individuals having a common interest through ownership of a business enterprise, or a substantial legal interest or equity therein, and who are actively engaged in the management thereof.

3. Insuring only individuals otherwise having an insurable interest in each other's lives.

C. A life insurance policy may be delivered or issued for delivery in this state insuring the lives of more than one individual if, in the director's discretion, the director determines that the group of individuals to be insured is substantially similar to a group described in section 20-1251.01 and sections 20-1252 through 20-1256.

D. Nothing in this article validates any charge or practice illegal under any rule of law or regulation governing usury, consumer lender loans, retail installment sales or the like, or extends the application of any such rule of law or regulation to any transaction not otherwise subject thereto.