KRS 304.18-020: "Group health insurance" defined -- Eligible groups and benefits.

(1) "Group health insurance" is hereby declared to be that form of health insurance

covering groups of persons as defined in this section, with or without one (1) or

more members of their families or one (1) or more of their dependents, or covering

one (1) or more members of the families or one (1) or more dependents of such

groups of persons, and issued upon the following basis:

(a) Under a policy issued to an employer or trustees of a fund established by an

employer, who shall be deemed the policyholder, insu ring employees of such

employer for the benefit of persons other than the employer (except as to

policies insuring only against aviation or transportation hazards). The term

"employees" as used in this paragraph shall be deemed to include the officers,

directors, managers and employees of the employer, the individual proprietor

or partner if the employer is an individual proprietor or partnership, the

officers, directors, managers and employees of subsidiary or affiliated

corporations, the individual proprietors, partners and employees of individuals

and firms, if the business of the employer and such individual or firm is under

common control through stock ownership, contract or otherwise. The term

"employees" as used in this paragraph may include retired e mployees. A

policy issued to insure employees of a public body may provide that the term

"employees" shall include elected or appointed officers. The policy may

provide that the term "employees" shall include the trustees or their

employees, or both, if th eir duties are principally connected with such

trusteeship;

(b) Under a policy issued to an association, including a labor union, which shall

have a constitution and bylaws and which has been organized and is

maintained in good faith for purposes other tha n that of obtaining insurance,

insuring members, employees, or employees of members of the association for

the benefit of persons other than the association or its officers or trustees. The

term "employees" as used in this paragraph may include directors of corporate

members and retired employees;

(c) Under a policy issued to the trustees of a fund established by two (2) or more

employers in the same or related industry or by one (1) or more labor unions

or by one (1) or more employers and one (1) or more l abor unions or by an

association as defined in paragraph (b), which trustees shall be deemed the

policyholder, to insure employees of the employers or members of the unions

or of such association, or employees of members of such association, for the

benefit of persons other than the employers or the unions or such association.

The term "employees" as used in this paragraph may include the officers,

directors, managers, and employees of the employer, and the individual

proprietor or partners if the employer is an individual proprietor or

partnership. The term "employees" as used in this paragraph may include

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

include the trustees or their employees, or both, if their duties are principal ly

connected with such trusteeship;

(d) Under a policy issued to a creditor insuring a group of debtors, as defined in

KRS 304.16-040, and under the same conditions and limitations as specified

in such section, but the amount in indemnity payable with resp ect to any

person insured thereunder shall not at any time exceed the aggregate of the

periodic scheduled unpaid installments;

(e) Under a policy issued to any other person or organization to which a policy of

group life insurance may be issued or delivered in this state to insure any class

or classes of individuals that could be insured under such group life policy;

and

(f) Under a policy issued to cover any other substantially similar group which, in

the discretion of the commissioner, may be subject to t he issuance of a group

health policy or contract.

(2) Any group health policy which contains provisions for the payment by the insurer of

benefits for expenses incurred on account of hospital, nursing, medical, or surgical

services for members of the famil y or dependents of a person in the insured group

may provide for the continuation of such benefit provisions, or any part or parts

thereof, after the death of the person in the insured group.