§ 36-12-8 - Provisions of insurance contract.
SECTION 36-12-8
§ 36-12-8 Provisions of insurancecontract. – (a) The director is hereby authorized and directed to establish a lifeinsurance plan for employees of the state as herein provided, which, subject tothe conditions and limitations contained in §§ 36-12-6 –36-12-14, and in the regulations promulgated pursuant to the authority vestedin him or her by §§ 36-12-6 – 36-12-14, will provide for eachparticipating employee group life insurance equal to the amount of his or herannual compensation, taken to the next higher multiple of one thousand dollars($1,000), plus an equal amount of group accidental death insurance withdismemberment coverage as provided herein.
(b) In addition to the benefits provided hereinbefore andsubject to the conditions and limitations of the policy or policies purchasedby the director, the policy or policies shall provide payments as follows:
SEE THE BOOK FOR THE PROPER TABLE.
(c) For any one accident the aggregate amount of groupaccidental death and dismemberment insurance that may be paid shall not exceedthe amount of life insurance provided by §§ 36-12-6 – 36-12-14.
(d) The director shall by regulation provide for theconversion of other than annual rates of compensation to an annual basis andshall further specify the types of compensation to be included in annualcompensation.
(e) The amount of insurance shall be reduced by one percent(1%) thereof at the end of each calendar month following the date the employeeattains the age of sixty-five (65), until the amount of the insurance reachesforty percent (40%) of the annual salary at age seventy (70). The amount ofinsurance shall remain at forty percent (40%) of the annual salary thereafteruntil the active employee reaches age seventy-four (74), at which point itshall be reduced to thirty percent (30%) of the annual salary until age eighty(80), at which point it shall be reduced to twenty-five percent (25%) of theannual salary and it shall remain at twenty-five percent (25%) thereafter.