KRS 304.32-300: Conversion health insurance policy -- Rights of employee's surviving

spouse.

(1) Any private employer doing business in this state who provides for his employees

on a self-insured basis, hospital or surgical benefits, other than for specific diseas es

or accidental injury only, shall purchase a conversion health insurance policy. Upon

the termination of the employment of any employee who has been continuously

employed for not less than six (6) months immediately preceding the termination,

the employee shall be entitled to have issued to him by the insurer, without evidence

of insurability, a health insurance policy on a form then available for conversion

from the health benefit plan provided by the employer by making written

application therefor, acco mpanied by the first quarterly, semiannual or annual

premium, at the option of the employee to the employer not later than thirty -one

(31) days after such termination.

(2) The individual health insurance policy available as provided in subsection (1) shall

cover the employee and his dependents for whom the employer provided health or

surgical benefits on the date the employment was terminated. The effective date of

any such individual policy shall be the date of the termination of the employment.

(3) The employee shall not be entitled to be issued a converted policy upon termination

of employment if he is or could be covered by Medicare (Title XVIII of the United

States Social Security Act as added by the social security amendments of 1965 or as

later amended or superseded). Furthermore, the employee shall not be entitled to be

issued a converted policy if (a) such person is covered for similar benefits by

another hospital or surgical or medical expense insurance policy or hospital or

medical service subscriber contract or medical practice or other prepayment plan or

by any other plan or program or (b) similar benefits are provided for, or are

available to, such person pursuant to, or in accordance with the requirements of any

statute, and the benefits provided or available under any of the sources referred to in

(a) and (b) above for such employee, together with the converted policy, would

result in over insurance according to the employer's standards relating to policies

converted from the hospital or surgical benefits provided by the employer.

(4) The surviving spouse, at the death of an employee, shall be entitled to be issued a

converted policy with respect to the spouse and such children whose coverage under

the employer's hospital or surgical benefits ter minates by reason of the death of an

employee.

(5) If an employee or employee's spouse becomes entitled to obtain a converted policy

pursuant to the foregoing provisions, and if such person has not been given written

notice of the existence of the conversi on privilege stated above, within thirty -one

(31) days of termination of the group coverage, then in such event the person shall

have an additional period within which to exercise the conversion privilege. This

additional period shall expire fifteen (15) d ays after the person shall have been

given said notice but in no event shall the additional period extend beyond sixty

(60) days after the expiration of the thirty -one (31) day conversion period stated

above. Written notice presented to the person or maile d by the employer to the last

known address of the person or mailed by the insurer to the last known address of

the person as furnished by the employer shall constitute the giving of notice for the

purpose of this paragraph. If an additional period is allo wed the person for exercise

of the conversion privilege as provided herein, and if written application for the

converted policy, accompanied by the first quarterly or semiannual or annual

premium, is made after the expiration of the thirty -one (31) day con version period

stated above, but within the additional period allowed an employee or spouse in

accordance with this paragraph, the effective date of the converted policy shall be

the date of termination of employment.