September 2001
Q.What
are our obligations regarding group life insurance when an employee
leaves our employment?
A.Employees
must be notified of their right to convert their group life policy
to an individual policy and the conversion period provided, within
fifteen days before or after the employee leaves employment. If the
notice is issued more than fifteen days after the end of employment,
the time allowed for the exercise of the conversion privilege shall
be extended for forty-five days after the giving of the notice. The
notification requirement can be satisfied by either the employer giving
or mailing the conversion notice to the employee, or the insurance
carrier mailing the notice to the employee.
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