8.23 – Group Term Life Insurance

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Scope: NMSU System

Source: ARP Chapter 8 | HR-Benefits

Rule Administrator:

Last Updated: 06/27/2016

Related

Cross-Reference:

Revision History:

2017 Recompilation, formerly Rule 7.15.20
06/27/2016 Change in Benefits approved by Board of Regents
06/21/2016 Change in Benefits approved by Chancellor
10/21/2015 Policy 7.15.05 approved as initial Rule 7.15.05 approved by Board of Regents
06/20/2013 Amendment to policy 7.15.05 approved by Board of Regents

A. Eligibility


The university offers group life insurance for all eligible employees.  Effective July 1, 2016, eligible employees are defined as those employees working at least .75 FTE in a regular, nine-month, or term appointment position.  Nine -month regular employees will receive full benefits, except for unemployment compensation, during the off employment period provided they return to employment the following academic year.  Eligible employees also include any employee continuously enrolled in this benefit from June 30, 2016.

Employees working in a position less than a .75 FTE; temporary employees; graduate assistants; other student employees; and Cooperative Extension Service employees with federal appointments are not eligible to participate in the group policy.

 

B. Enrollment Procedures


At the time of employment, each new eligible employee must either enroll in or waive coverage under the policy by completing an enrollment form.  Employees must enroll in or waive coverage within the first 31 calendar days of employment.  If an employee does not complete an enrollment or waiver form within 31 calendar days of eligible employment, the employee will automatically waive their right to life insurance and will be subject to approval by the life insurance carrier for coverage to begin.

 

C. Effective Date of Coverage


Coverage is optional and is available from the date of eligible employment.  Coverage is effective the first pay period after 30 days of employment. Coverage may begin on the first or sixteenth day of the month. Employees must complete and return an enrollment form to the Office of Human Resource Services within 31 calendar days of their regular date of employment to receive this benefit without late enrollment provisions.

 

 

D. Premium Payments


Premium payments are made by payroll deduction, and the university pays a percentage of the premium.  Premium payments begin the pay period in which coverage begins. Note: A full fiscal year of premiums (June-July) will be deducted over 18 paychecks (August-May) for 9 month faculty/staff.

 

E. Change of Beneficiary


Employees are asked to keep the Office of Human Resource Services notified of any name change or beneficiary change.

 

F. Coverage During Disability


If an employee is totally disabled, the employee may request a waiver of premium from the insurance company.  If granted, the insurance will remain in force without payment of premium for the length of the disability or until age 70, whichever comes first.

 

G. Coverage After Retirement


When an employee officially retires from the university with at least 10 years of consecutive regular service the employee may elect to continue and pay for coverage under this policy up to a scheduled maximum; however, double indemnity provisions for accidental death and dismemberment are canceled for all insurance carried into retirement.   If coverage is terminated for any reason, enrollment at a later date is prohibited.

 

H. Coverage During Leave Without Pay (LWOP)


During periods of LWOP, life insurance may be continued at the option of the employee.  Continued coverage will not exceed the length of time agreed upon by the individual vendor agreements.  Arrangements for payment of the premiums will be made with the Office of Human Resource Services and the Office of University Accounts Receivable. If premiums are not paid coverage will end as of the last date premiums were paid. If coverage is not continued or is canceled during leave without pay, the employee will be required to re-apply for coverage as a late enrollee upon return to work. Reinstatement of coverage is not automatic and is subject to approval from the carrier. If the employee is on LWOP for a full pay period the employee is responsible for both the university’s and employee’s portion of premiums (except FMLA, Professional LWOP and Educational LWOP).

 

I. Coverage After Termination


There is a conversion privilege which allows a terminated employee to convert the group policy to an individual policy without medical examination.  Application must be made to the insurance carrier within the 31 calendar days following termination of employment.  Retired employees may also exercise the conversion privilege on the remaining portion of the coverage not carried into retirement.  Forms are available in the Office of Human Resource Services. Coverage ceases at midnight on the 15th day of the month if employment terminates between the 1st and 15th day of the month, provided the applicable premium for the pay period has been paid. If an employee terminates employment between the 16th and last day of the month, coverage ceases at midnight on the last day of the month, provided the applicable premium for the pay period has been paid.

 

J. Death Claims


When an employee dies, the Office of Human Resource Services will be available to meet with the beneficiary to explain the policy and process claim requests.

 

K. Discontinuing Coverage


An employee who discontinues coverage and then wishes to re-enroll in the future will be required to submit evidence of insurability (a medical examination at the employee’s expense may also be requested).  Reinstatement of coverage is not automatic it is subject to approval or disapproval by the university’s insurance carrier.