(a) A surviving dependent of a deceased peace officer or firefighter may apply to the commissioner for payment of medical insurance premiums for a surviving dependent under AS 39.60.030. Within the first 60 days after the death of the peace officer or firefighter, the surviving dependent is presumed to be eligible to receive the premium payment. Not later than 30 days after receiving the application, the commissioner shall determine whether the surviving dependent is eligible under (b) of this section. If the commissioner determines the surviving dependent is eligible under (b) of this section, the commissioner shall thereafter determine annually, not later than 30 days before the anniversary of the employee's death, whether the surviving dependent has become ineligible under (c) or (d) of this section or AS 39.60.060(b). A surviving dependent who has been determined ineligible under (c)(2) or (d)(1) of this section may reapply under this subsection. The commissioner may require a surviving dependent to provide information relevant to a determination under this subsection.

(b) A person who is a surviving dependent of an employee who was a peace officer or firefighter is eligible for premium payments under (a) of this section if

(1) on the date of the employee's death, the employee was employed by the state or a municipality that has elected to participate under AS 39.60.050 in a permanent, full-time position for which the state or municipality paid or expected to pay the employee for 12 months each year;

(2) on the date of the employee's death, the surviving dependent was receiving benefits under the employee's employer-sponsored medical insurance coverage;

(3) the proximate cause of the employee's death was a bodily injury sustained or a hazard undergone while in the performance and within the scope of the employee's duties, as determined by the commissioner; and

(4) the injury or hazard was not the proximate result of wilful negligence by the employee.

(c) Subject to (f) of this section, a surviving spouse becomes ineligible for premium payments under this section on the earlier of the date the surviving spouse

(1) has received the premium payments for 10 years;

(2) becomes eligible to receive major medical insurance coverage by other means; or

(3) becomes eligible for Medicare.

(d) Except for a child who is totally and permanently disabled, a child who survives the employee becomes ineligible for premium payments under this section on the earlier of the date the surviving dependent child

(1) becomes eligible to receive major medical insurance coverage by other means; or

(2) reaches 26 years of age.

(e) Subject to AS 39.60.060(b), the commissioner shall pay the premium for the medical insurance coverage, beginning the first day of the month following the application process and continuing until the first day of the month following the date the commissioner determines the surviving dependent is ineligible under (c) or (d) of this section. Payment of premiums shall be made to the applicable employer medical insurance provider. The medical insurance coverage provided under this section must be the level of coverage existing at the time of the employee's death or, if the level of coverage provided by the employer for active, permanent, full-time employees is amended, the amended level of coverage.

(f) A surviving spouse who is a parent of a child eligible for premium payments under this section is not subject to (c)(1) of this section.