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304.16-030 Employee groups.
The lives of a group of individuals may be insured under a policy issued to an employer,
or to the trustees of a fund established by an employer, which employer or trustees shall
be deemed the policyholder, to insure employees of the employer for the benefit of
persons other than the employer, subject to the following requirements:
(1) The employees eligible for insurance under the policy shall be all of the employees
of the employer, or all of any class or classes thereof determined by conditions
pertaining to their employment. The policy may provide that the term "employees"
shall include the employees of one (1) or more subsidiary corporations, and the
employees, individual proprietors, and partners of one (1) or more affiliated
corporations, proprietors or partnerships if the business of the employer and of such
affiliated corporations, proprietors or partnerships is under common control through
stock ownership, contract or otherwise. The policy may provide that the term
"employees" shall include the individual proprietor or partners if the employer is an
individual proprietor or a partnership. The policy may provide that the term
"employees" shall include retired employees. No director of a corporate employer
shall be eligible for insurance under the policy unless such person is otherwise
eligible as a bona fide employee of the corporation by performing services other
than the usual duties of a director. No individual proprietor or partner shall be
eligible for insurance under the policy unless he is actively engaged in and devotes a
substantial part of his time to the conduct of the business of the proprietor or
partnership. A policy issued to insure the employees of a public body may provide
that the term "employees" shall include elected or appointed officials;
(2) The premium for the policy shall be paid by the policyholder, either wholly from the
employer's funds or funds contributed by him, partly from such funds and partly
from funds contributed by the insured employees, or entirely from funds contributed
by the insured employees. Except as provided in subsection (3) of this section, a
policy on which no part of the premium is to be derived from funds contributed by
the insured employees shall insure all eligible employees, except those who reject
the coverage in writing;
(3) An insurer may exclude or limit the coverage on any person for whom evidence of
individual insurability is not satisfactory to the insurer; and
(4) The amounts of insurance under the policy must be based upon some plan
precluding individual selection either by the employees or by the employer or
trustees.
Effective: July 12, 2012
History: Amended 2012 Ky. Acts ch. 116, sec. 1, effective July 12, 2012. -- Amended
2008 Ky. Acts ch. 140, sec. 1, effective July 15, 2008. -- Amended 2005 Ky. Acts ch.
101, sec. 1, effective June 20, 2005. -- Amended 1972 Ky. Acts ch. 263, sec. 2,
effective July 1, 1972. -- Created 1970 Ky. Acts ch. 301, subtit. 16, sec. 3, effective
June 18, 1970.
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