§ 165. Termination of active employment. 1. The health benefit
coverage of any employee and his or her dependents, if any, shall cease
upon the discontinuance of his or her term of office or employment,
subject to regulations which may be prescribed by the president for
extension of coverage and for conversion to an individual contract
providing for such of the benefits provided under this article as may be
provided under such individual contracts, under terms approved by the
president, the total cost of any such contract to be borne by the
employee.

2. In the event of death of an employee having coverage at the time of
death for himself or herself and his or her dependents, and where the
circumstances of death are such that beneficiaries or dependents of such
deceased employee are entitled to an accidental death benefit payable by
a retirement system or pension plan administered by the state or a civil
division thereof on account of death resulting from an accident
sustained in the performance of his or her duties or to death benefits
provided for under the workers' compensation law, the unremarried spouse
of such employee covered at the time of his or her death and his or her
covered dependents, for so long as they would otherwise qualify as
dependents eligible for coverage under the regulations of the president,
shall be eligible to continue full coverage under the health benefit
plan upon payment at intervals determined by the president of the full
cost of such coverage; provided, however, that the state shall pay and
any participating employer may elect to pay the full cost of such
coverage, except that in the case of those enrolled in an optional
benefit plan, the employer shall contribute not more than the same
dollar amount which would be paid if such unremarried spouse and
dependents were enrolled in the basic statewide health benefit plan. The
president shall adopt such regulations as may be required to carry out
the provisions of this subdivision which shall include, but need not be
limited to, provisions for filing application for continued coverage,
including reasonable time limits therefor, and provisions for continued
coverage of spouse and dependents pending determination of an
application for accidental death benefits from a retirement system or
pension plan administered by the state or a civil division thereof or
pending determination of a claim for death benefits under the workers'
compensation law.