Employers have no obligation under Kentucky law to offer life insurance to their employees. However, if group life insurance is among the benefits offered to workers, the law contains certain minimum requirements that must be satisfied (KY Rev. Stat. Sec. 304.16-010et seq.).
Group characteristics. There is no minimum size requirement for the group to be insured. The group must include all employees or all employees belonging to the class or classes defined (based on conditions related to employment) as eligible for coverage.
The policy may provide that the term “employees” includes the employees of one or more subsidiary corporations, and the employees, individual proprietors, and partners of one or more affiliated corporations, proprietorships, or partnerships under common control. The term may also be defined to include lawful agents of the employer. The term “employees” may also include retired employees and the individual proprietor or partners if the employer is an individual proprietorship or partnership. Corporate directors are not eligible unless they are also bona fide employees. Individual proprietors and partners are not eligible unless they are actively involved and devote a substantial amount of time to the business.
Beneficiary. The employee may name anyone except the employer as beneficiary.
Employer/employee contributions. Employers are not required to make any contribution toward the cost of group insurance. If the employer pays the entire cost, all employees except those whom the insurer excludes as uninsurable must be covered.
Dependents.The policy may be extended to cover dependents. Dependents include the employee's spouse, children under the age of 18, and children of ...