KRS 304.16-070: Public employee groups.

(1) As used in this section, "employees" means employees of the United States

government, or any state, or of any political subdivision or instrumentality of any of

them, together with elective or appointed officers.

(2) The lives of a group of individuals may be insured under a policy issued to any

department or agency of the Commonwealth of Kentucky and its political

subdivisions, state college or university, and school districts or to an association of

public employees formed for purposes other than obtainin g insurance, which

association or departmental or agency head shall be deemed the policyholder, to

insure members of such association or public employees for the benefit of persons

other than the departmental or agency head, the association or any of its o fficials,

subject to the following requirements:

(a) The persons eligible for insurance under the policy shall be all members of the

association or employees of the department or agency, or all of any class or

classes thereof determined by conditions pertaining to their employment, or to

membership in the association, or both. The policy may provide that

"employees" includes retired employees.

(b) The premium for the policy shall be paid by the policyholder, either from the

association's own funds, or from charges collected from the insured members

or employees specifically for the insurance, or from both, or as may otherwise

be authorized by existing or future legislation. Any charges collected from the

insured members or employees specifically for the insu rance, and the dues of

the association if they include the cost of insurance, may be collected through

deductions by the employer from salaries of the members or employees. Such

deductions from salary may be paid by the employer to the association or

directly to the insurer.

(c) Charges collected from the insured members or employees specifically for the

insurance, and the dues of the association if they include the cost of insurance,

shall be determined according to each attained age or in not less than fo ur (4)

reasonably spaced attained age groups. In no event shall the rate of such dues

or charges be level for all members or employees regardless of attained age.

(d) The policy must cover at least ten (10) persons at the date of issue.

(e) The amounts of insurance under the policy must be based upon some plan

precluding individual selection either by the members, employees or by the

association.

(3) This section does not preclude the insuring of public employees under any other

applicable provision of this subtitle.