KRS 304.16-090: Credit union groups.

The lives of a group of individuals may be insured under a policy issued to a credit union,

or to a trustee or trustees or agent designated by two (2) or more credit unions, which

shall be deemed the policyholder, to insure eligible members of the credit u nion or credit

unions for the benefit of persons other than the credit union or credit unions, trustee or

trustees, or agent, or its officials, subject to the following requirements:

(1) The members eligible for insurance under the policy shall be all of t he members of

the credit union, or all except any for whom evidence of individual insurability is

not satisfactory to the insurer, or all of any class or classes thereof;

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

credit union's funds, or partly from the credit union's funds and partly from funds

contributed by the insured member specifically for the member's insurance. A

policy shall insure all eligible members, or all except any for whom evidence of

individual insurability is not satisfactory to the insurer; and

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

precluding individual selection either by the insured members or by the

policyholder.