Kentucky Revised Statutes Title XXV. Business and Financial Institutions § 304.18-126.Policies to provide reasonable extension of benefits during disability; extensions to be described in group policies and certificates

(1) As used in this section, “disability” means the state of being hospitalized on the date of replacement coverage or coverage under an extension of benefits provision.

(2) An insurer offering group health insurance, as defined in KRS 304.18-020, shall provide for an extension of benefits in the event of a member's total disability at the date of discontinuance of the group policy or contract in accordance with this section.

(3) Benefits payable under an extension of benefits shall be limited to the member's hospital confinement or period of total disability for a specific condition, injury, or illness that resulted in the member's total disability.

(4) In the case of hospital or medical expense coverages, a reasonable extension of benefits or accrued liability shall be required. A provision shall be considered reasonable if:

(5) Coverage for a total disability shall not be considered to have been obtained under a succeeding plan, whether it be fully insured or self-insured, if the succeeding plan excludes coverage for the total disability covered under the prior plan's extension of benefits provision.

(6) Any applicable extension of benefits or accrued liability shall be described in the group policy as well as in group insurance certificates.