KRS 304.16-080: Association groups.

(1) A policy may be issued to an association of employers, to an association (other than

an association of public employees to whom KRS 304.16 -070 is applicable) whose

members are in the same industry, occupation or profession, or to a trust or to the

trustees of a fund established, created, or maintained for the benefit of members of

one (1) or more associations. The association or associations shall have:

(a) At the outset a minimum of one hundred (100) persons;

(b) Legally been in active existence for at least two (2) years;

(c) A constitution and bylaws which provide that:

1. The association or associations hold regular meetings not less than

annually to further purposes of the members;

2. Except for credit unions, the association or associations collect due s or

solicit contributions from members; and

3. Members have voting privileges and representation on the governing

board and committees; and

(d) Been organized and maintained in good faith for purposes other than that of

obtaining insurance.

(2) Charges co llected 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 four (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.

(3) The policy shall be subject to the following requirements:

(a) The policy shall insure members of the association or associ ations, employees

thereof or employees of members, or one (1) or more of the preceding, or all

of any class or classes thereof for the benefit of persons other than the

employee's employer;

(b) The premium for the policy shall be paid from funds contribute d by the

association or associations, or by employer members, or by both, or from

funds contributed by the covered persons, or from both the covered persons

and the association, associations, or employer members;

(c) Except as provided in paragraph (d) of this subsection, a policy on which the

premium is not to be derived from funds contributed by the covered persons

specifically for the insurance shall insure all persons, except those who reject

the coverage in writing; and

(d) An insurer may exclude or limit the coverage on any person for whom

evidence of individual insurability is not satisfactory to the insurer.