(c) (1) All employees of the public employer, all members of the public
employees association, or all of any class or classes of employees or members
determined by conditions pertaining to their employment or membership in the public
employees association or both are eligible for insurance under a policy issued in
accordance with this section.

(2) A policy issued to insure employees of a public employer may provide
that the term "employee" includes:

(i) a retired employee; and

(ii) an elected or appointed official.

[(d) (1) Subject to paragraph (2) of this subsection, the public employer or
public employees association shall pay the premium for the policy:

(i) wholly from funds contributed by it as a public employer or
public employees association;

(ii) partly from the funds contributed by it as a public employer or
public employees association and partly from funds contributed by the insured
employees or members; or

(iii) wholly from funds contributed by the insured employees or

members.

(2) A public employer may:

(i) on written authorization from an employee, deduct from the
employee's salary the required contribution for the premiums; and

(ii) pay the premium for the policy wholly or partly from funds
contributed by a municipal corporation that is a public employer as authorized by the
charter of the municipal corporation or as otherwise authorized by law.

(3) A policy issued to insure employees of a public employer may be
placed in force only if at least 75% of the eligible employees, other than those who
have evidence of individual insurability that is unsatisfactory to the insurer, elect to
make the required contributions.

(4) A policy issued to insure members of a public employees association
on which the premium is to be paid wholly or partly from funds contributed by the
insured members specifically for their insurance may be placed in force only if at least
75% of the eligible members, other than those who have evidence of individual
insurability that is unsatisfactory to the insurer, or at least 600 of the eligible
members, elect to make the required contributions.

(5) A policy issued to insure members of a public employees association
on which no part of the premium is paid from funds contributed by insured members
specifically for their insurance must insure:

(i) all eligible members; or