(a) The surviving spouse of a state employee killed in the performance of duty may continue to participate in the group insurance plan for state employees. The coverage may include the surviving spouse and any dependent children. The dependent children shall be subject to the same eligibility provisions applicable to active state employees and their children.

(b) 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 their coverage. The agency employing the employee at or immediately preceding the employee's death shall pay the employer portion of the premium.

(c) For purposes of this section, the determination as to whether a state employee was killed in the performance of duty shall be made pursuant to title 9, chapter 8.

(d) In the event that the surviving spouse is or becomes eligible for insurance coverage through a subsequent marriage or employment, the extension of coverage required 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.

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

(f) This section shall be retroactive. 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.