§ 36-12-8. Provisions of insurance contract. (a) The director is hereby authorized and directed to establish a life insurance plan for employees of the state as herein provided, which, subject to the conditions and limitations contained in §§ 36-12-6 - 36-12-14, and in the regulations promulgated pursuant to the authority vested in him or her by §§ 36-12-6 - 36-12-14, will provide for each participating employee group life insurance equal to the amount of his or her annual compensation, taken to the next higher multiple of one thousand dollars ($1,000), plus an equal amount of group accidental death insurance with dismemberment coverage as provided herein.

(b) In addition to the benefits provided hereinbefore and subject to the conditions and limitations of the policy or policies purchased by the director, the policy or policies shall provide payments as follows:

(c) For any one accident the aggregate amount of group accidental death and dismemberment insurance that may be paid shall not exceed the amount of life insurance provided by §§ 36-12-6 - 36-12-14.

(d) The director shall by regulation provide for the conversion of other than annual rates of compensation to an annual basis and shall further specify the types of compensation to be included in annual compensation.

(e) The amount of insurance shall be reduced by one percent (1%) thereof at the end of each calendar month following the date the employee attains the age of sixty-five (65), until the amount of the insurance reaches forty percent (40%) of the annual salary at age seventy (70). The amount of insurance shall remain at forty percent (40%) of the annual salary thereafter until the active employee reaches age seventy-four (74), at which point it shall 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 the annual salary and it shall remain at twenty-five percent (25%) thereafter.

History of Section. (P.L. 1960, ch. 119, § 3; P.L. 1987, ch. 574, § 1.)