KRS 304.16-190: Conversion on termination of eligibility.

There shall be a provision that if the insurance, or any portion of it, on an individual

covered under the policy, ceases because of termination of employment or of membership

in the class or classes eligible for coverage under the policy, such individual shall be

entitled to have issued to him by the insurer, without evidence of insurability, an

individual policy of life insurance without disability or other supplementary benefits,

provided application for the individual policy shall be made, and the first premium paid

to the insurer, within thirty -one (31) days after such termination, and provided further

that:

(1) The individual policy shall, at the option of such individual, be on any one (1) of the

forms, except term insurance, then customarily issued b y the insurer at the age and

for the amount applied for;

(2) The individual policy shall be in an amount not in excess of the amount of life

insurance which ceases because of such termination less, in the case of a person

whose membership in the class or c lasses eligible for coverage terminates but who

continues in employment in another class, the amount of any life insurance for

which such person is or becomes eligible within thirty -one (31) days after such

termination under any other group policy; provide d that any amount of insurance

which has matured on or before the date of such termination as an endowment

payable to the individual insured, whether in one (1) sum or in installments or in the

form of an annuity, shall not, for the purpose of this section , be included in the

amount which is considered to cease because of such termination; and

(3) The premium on the individual policy shall be at the insurer's then customary rate

applicable to the form and amount of the individual policy, to the class of ris k to

which such individual then belongs, and to his age attained on the effective date of

the individual policy.

(4) Subject to the same conditions set forth in subsection (3) of this section, the

conversion privilege shall be available:

(a) To a surviving dependent, if any, at the death of the employee or member,

with respect to the coverage under the group policy that terminates by reason

of the death; and

(b) To the dependent of the employee or member upon termination of coverage of

the dependent, while the employee or member remains insured under the

group policy, by reason of the dependent ceasing to be a qualified family

member under the group policy.