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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 by 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 classes 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; provided 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 risk 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.
Effective: July 15, 2008
History: Amended 2008 Ky. Acts ch. 140, sec. 10, effective July 15, 2008. -- Created
1970 Ky. Acts ch. 301, subtit. 16, sec. 19, effective June 18, 1970.
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