Fund investment in insurance.

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(1) Except as provided in subsection (2) of this section and with the concurrence of sixty-five percent of the fire department members voting thereon and sixty-five percent of the retired fire department members voting thereon, the board may:

(a) Insure the fire department members under the following insurance policies issued by companies authorized to do business in this state:

  1. Individual, group, or blanket life, endowment, or annuity insurance;

  2. Variable annuity insurance; or

  3. Disability or liability insurance; and

(b) Spend any part of the fund to pay premiums on these policies.

(2) The board shall not spend fund moneys to purchase insurance if the expenditure would impair the pension fund's ability to:

  1. Pay annuities to a fire department member, surviving spouse, or dependent parent orchild receiving annuities; or

  2. Meet the future requirements of pensions, benefits, and awards under the plan.

(3) The board must be the beneficiary of any insurance policies, and the proceeds of the insurance policies shall be paid to the board as an addition to the fund.

Source: L. 95: Entire part added, p. 1371, § 2, effective June 5.


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