1. Except as otherwise provided in this section, no policy of group life insurance may be delivered or issued for delivery in this State to a group which was formed for the purpose of purchasing one or more policies of group life insurance.
2. A policy of group life insurance may be delivered to a group described in subsection 1 if the Commissioner approves the issuance. The Commissioner must not grant approval unless the Commissioner finds that:
(a) The benefits of the policy are reasonable in relation to the premiums charged; and
(b) The group to which the policy is issued is organized and operated in a fiscally sound manner.
3. The provisions of subsection 1 do not apply to a policy of group life insurance which is delivered or issued for delivery in this State to a group whose members:
(a) Are related by blood, marriage or legal adoption;
(b) Have 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; or
(c) Otherwise have an insurable interest in each other’s lives.
4. An insurer may exclude or limit the coverage in a policy issued pursuant to this section of any person as to whom evidence of insurability is not satisfactory to the insurer.
5. The provisions of this section apply to the offering in this State of a policy issued in another state.