Kentucky Revised Statutes Title XVIII. Public Health § 220.205.Group insurance for employees may be provided

(1) The board of directors of any sanitation district is authorized to form their employees into a group, or groups, for the purpose of obtaining the advantages of the group plan of life insurance.

(2) The premiums may be paid by the policyholder wholly from funds contributed by the insured employee, by payroll deduction or otherwise; or partly from each. No payment of premiums by the sanitation district shall constitute compensation to an insured employee for the purposes of any statute fixing or limiting the compensation of such an employee. Any premium or other expense incurred by the sanitation district shall be considered a proper cost of administration.

(3) The policy may also provide accidental death and dismemberment insurance and may contain such provisions with respect to the call or classes of employees covered, amounts of insurance for designated classes or groups of employees, terms of eligibility, continuation of insurance after retirement, and such other provisions as the board of directors may approve.

(4) The board of directors is authorized to perform all acts necessary or advisable for the purposes of contracting for and maintaining insurance under the provisions hereof.