Employers have no obligation under Arkansas law to offer life insurance to their employees. However, if group life insurance is among the benefits offered to workers, certain minimum requirements must be satisfied (AR Code Sec. 23-83-101 et seq.).
Group characteristics. The employees eligible for coverage must include all the employer's employees or all of a specific class of employees. Employees eligible for coverage may include employees of subsidiary corporations and the employees, individual proprietors, and partners of affiliated corporations, proprietorships, or partnerships that are under common control. Covered employees may also include the individual proprietor or partners if the employer is an individual proprietorship or partnership, retired employees, and directors of a corporate employer. An insurer may exclude or limit coverage of any employee who does not satisfy the insurer's requirement for individual insurability.
Beneficiary. The employee may name anyone except the employer as beneficiary.
Employer/employee contributions. Employers are not required to contribute toward the cost of group insurance. If the employer pays the entire cost, all employees in the eligible class, except those that decline in writing, must be covered by the policy. The insurer may also exclude or limit coverage of any person who does not satisfy the insurer's requirement for individual insurability.
Family coverage. Group coverage may be extended to an employee's spouse and dependent children. The employer may, but is not required to, contribute toward this coverage. If the employer pays the entire cost, all spouses and dependent children of employees in the eligible class must be covered by the ...