KRS 304.16-060: Trustee groups.

The lives of a group of individuals may be insured under a policy issued to the trustees of

a fund established by two (2) or more employers in the same industry or in related

industries or by one (1) or more labor unions, or by one (1) or more employers an d one

(1) or more labor unions, which trustees shall be deemed the policyholder, to insure

employees of the employers or members of the unions for the benefit of persons other

than the employers or the unions, subject to the following requirements:

(1) At no time shall a policy be issued to insure employees of any employer whose

eligibility to participate in the fund as an employer arises out of considerations

directly related to the employer's being a commercial correspondent or business

client or patron o f another employer, except where such other employer exercises

substantial control over the business operations of the participating employers.

(2) The persons eligible for insurance shall be all of the employees of the employers or

all of the members of the unions, or all of any class or classes thereof determined by

conditions pertaining to their employment, or to membership in the unions, or to

both. The policy may provide that the term "employees" shall include retired

employees or union members, and th e individual proprietor or partners if an

employer is an individual proprietor or a partnership. No director of a corporate

employer shall be eligible for insurance under the policy unless such person is

otherwise eligible as a bona fide employee of the co rporation by performing

services other than the usual duties of a director. No individual proprietor or partner

shall be eligible for insurance under the policy unless he is actively engaged in and

devotes a substantial part of his time to the conduct of t he business of the proprietor

or partnership. The policy may provide that the term "employees" shall include

trustees or their employees, or both, if their duties are principally connected with

such trusteeship.

(3) The premium for the policy shall be paid by the trustees wholly from funds

contributed by the employer or employers of the insured persons, or by the union or

unions, or by both or partly from such funds and partly from funds contributed by

the insured persons. A policy on which no part of the premium is to be derived from

funds contributed by the insured persons specifically for their insurance shall insure

all eligible persons, except those who reject the coverage in writing.

(4) An insurer may exclude or limit the coverage on any person for wh om evidence of

individual insurability is not satisfactory to the insurer.

(5) The amounts of insurance under the policy shall be based upon some plan

precluding individual selection either by the insured persons or by the policyholder,

employers or unions.