(a) The state insurance committee shall approve a group life insurance plan for national guard members called up to active duty, providing benefits as the state insurance committee deems necessary and reasonable. From the appropriations made each year in the general appropriations act, the military department is authorized to pay, on behalf of each participating national guard member called up to state active duty, the cost of each individual's premium on the state-approved group life insurance plan for national guard members called up to state active duty. It is expressly provided that there shall be only one (1) such approved state plan.

(b)

(1) The surviving spouse and eligible dependent children of a state employee maintaining family coverage through the state group insurance plan, who is a member of the Tennessee army national guard or the Tennessee air national guard, and who has been activated for federal duty or who has been called up on state active duty, and who is subsequently killed in the performance of that duty, may continue to participate in the group insurance plan for state employees established pursuant to § 8-27-202.

(2) The cost of the coverage provided in this section to the surviving spouse and dependent children shall be equal to the amount paid by active employees for the same coverage. The military department shall pay the employer portion of the premium.

(3) The criteria for determination of eligibility of dependent children shall be the same as the criteria established by the state insurance committee for state employees and their families.

(4) In the event that the surviving spouse is or becomes eligible for insurance coverage through a subsequent marriage or employment, the extension of coverage authorized in this section shall be terminated on the first day of the following month. The state insurance committee may establish specific conditions for extensions in instances where preexisting conditions may apply during the transfer of coverage.

(5) In the event that insurance coverage under the state plan is terminated for the surviving spouse pursuant to subdivision (b)(4), but the surviving spouse is unable to secure through the new coverage insurance coverage for the eligible dependent children, the eligible dependent children may continue coverage under this section; provided, that the eligible dependent children continue to meet all dependent eligibility requirements.

(6) This section shall be retroactive to September 11, 2001. As individuals who are qualified for such extension are identified, elect coverage, and pay the appropriate contribution, the coverage shall be provided on a prospective basis.