Employers have no obligation under Kansas 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 (KS Stat. Sec. 40-433).
Group characteristics. The policy must cover at least two employees when it is issued. The employees eligible for coverage must include all the employer's employees or all those belonging to a class defined by circumstances that relate to employment.
Eligible employees. The policy may provide that employees include the employees of one or more subsidiary or affiliated businesses if the businesses are under common control through stock ownership, contract, or otherwise. Employees may include retired employees and may also include individual proprietors and partners who are actively involved in the conduct of the business. The policy may provide that the term “employees” will include retired employees. Corporate directors are eligible for insurance if they are eligible as bona fide employees of the corporation based on performing services other than the usual duties of a director.
Beneficiary. The employee may name anyone except the employer as beneficiary.
Employer/employee contributions. Employers are not required to make a contribution toward the cost of group insurance. If the employer pays the entire cost, all employees in the eligible class must be covered by the policy except those who reject coverage in writing.
Family coverage. Group coverage may be extended to an employee's spouse and an employee's and spouse's children, grandchildren, and parents. Coverage on the spouse and on each child or parent is limited to 50 percent of the amount on the ...