Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Chapter 175 of the General Laws is hereby amended by inserting after section 132A the following section:-

Section 132A½. A group annuity offered to a resident of the commonwealth under a group annuity contract issued to a group other than one described in section 132A shall be subject to the following requirements:

(a) A group annuity contract shall not be delivered in the commonwealth unless the commissioner finds that:

(1) the issuance of the group annuity contract is not contrary to the best interests of the public;

(2) the issuance of the group annuity contract would result in economies of acquisition or administration; and

(3) the benefits are reasonable in relation to the premiums charged.

(b) The premium for the annuity contract shall be paid either from the contract holder's funds or from funds contributed by the covered persons, or from both.

SECTION 2. Said chapter 175 is hereby further amended by inserting after section 133 the following section:-

Section 133A. Group life insurance offered to a resident of the commonwealth under a group life insurance policy issued to a group other than one described in section 133 shall be subject to the following requirements:-

(a) A group life insurance policy shall not be delivered in the commonwealth unless the commissioner finds that:

(1) the issuance of the group policy is not contrary to the best interests of the public;

(2) the issuance of the group policy would result in economies of acquisition or administration; and

(3) the benefits are reasonable in relation to the premiums charged.

(b) The premium for the policy shall be paid either from the policyholder's funds or from funds contributed by the covered persons, or from both.

(c) An insurer may exclude or limit the coverage on any person as to whom evidence of individual insurability is not satisfactory to the insurer.