(a) County officials, as defined in § 8-34-101, shall be allowed to participate in any plan established by the local government insurance committee even if the county does not participate. The cost of participation shall be determined by the local government insurance committee, and the official may be required to bear the full cost of participation.

(b) For purposes of this part and determining eligibility to participate within a health insurance plan established pursuant to this section, “employees of local governments and quasi-governmental organizations” includes, but is not limited to, utility district commissioners appointed or elected pursuant to § 7-82-307. Nothing in this subsection (b) shall diminish the requirements in §§ 8-27-702(b), 8-27-703(a) and 8-27-703(b).

(c) Local government agencies seeking to enroll in any plan offered by the local government insurance committee shall provide, in its request for enrollment, the following:

(1) Verification that a majority of eligible employees of the local government agency have agreed to enroll in the plan. The local government insurance committee may waive the majority requirement if, in its discretion, there is good cause to do so; and

(2) Information necessary for processing the enrollment, including names and required identifying information, financial information necessary to process payments, and signed memoranda of understanding.

(d) The local government insurance committee reserves the right to audit participation and to terminate agencies whose participation falls below a majority of eligible employees.

(e)

(1) The surviving spouse and eligible dependent children of a participant in the health plan authorized in § 8-27-702, who maintains family coverage, who is a member of the Tennessee army national guard or the Tennessee air national guard, 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 participate in the group health insurance plan authorized in this section.

(2) The cost of the coverage provided in this section to the surviving spouse and dependent children shall be equal to twenty percent (20%) of the monthly premium paid by employees for the same coverage. The military department shall pay the balance of the monthly premium.

(3) The criteria for determination of eligibility of dependent children shall be the same as the criteria established by the local government insurance committee for participating 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 subsection (e) shall be terminated on the first day of the following month. The local government 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 local government plan is terminated for the surviving spouse pursuant to subdivision (e)(4), 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.

(6) This subsection (e) 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.