KRS 304.18-050: Readjustment of premiums -- Dividends.

Any contract of group health insurance may provide for the readjustment of the rate of

premium based upon the experience thereunder. If a policy dividend is declared or a

reduction in rate is made or continued for the first or any subsequent year of insura nce

under any policy of group health insurance issued prior to or after June 18, 1970, to any

policyholder, the excess, if any, of the aggregate dividends or rate reductions under such

policy and all other group insurance policies of the policyholder over the aggregate

expenditure for insurance under such policies made from funds contributed by the

policyholder, or by an employer or insured persons, or by a union or association to which

the insured persons belong, including expenditures made in connection w ith

administration of such policies, shall be applied by the policyholder for the sole benefit of

insured employees or members.