Employers have no obligation under Maine law to offer life insurance to their employees. However, if group life insurance is among the benefits offered to workers, the law contains certain minimum requirements that must be satisfied (ME Rev. Stat. Tit. 24A Sec. 2602-Aet seq.).
Group characteristics. The group to be insured must consist of at least 10 people, and it must include all employees or all of any class or classes of employees. The policy may provide that the term “employees” includes the employees of one or more subsidiary corporations and the employees, individual proprietors, and partners of one or more affiliated corporations, proprietorships, or partnerships under common control. The term “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. If the insurer reserves the right to require a person eligible for insurance to furnish evidence of individual insurability satisfactory to the insurer as a condition of coverage, it must also set out the conditions under which the insurer will assert that right.
Beneficiary. The employee may name anyone except the employer as beneficiary.
Employer/employee contributions. Employers are not required to make any contribution toward the cost of group insurance. If the employer pays the entire cost, all employees except those whom the insurer excludes as uninsurable and those who reject coverage in writing must be covered.
Dependents. The policy may be extended to cover employees' spouses and dependent children.
Conversion. Employees and covered dependents are guaranteed the right to convert group coverage to ...