(a) For purposes of this section, "dependent" includes:
(1) a child of an employee or member who is:
(A) unmarried; and
(B) younger than 25 years of age; and
(2) a grandchild of an employee or member who is:
(A) unmarried;
(B) younger than 25 years of age; and
(C) a dependent of the insured for federal income tax purposes at the time the application for coverage of the grandchild is made.
(b) A group accident and health insurance policy may provide coverage for the spouse or a dependent of an employee or member.