Employers have no obligation under Alabama 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 (AL Code Sec. 27-18-1et seq.).
Beneficiary. The employee may name anyone as beneficiary, including the employer.
Employer/employee contributions. Employers are not required to make any contribution toward the cost of group insurance.
Conversion. Employees are guaranteed the right to convert group coverage to an individual policy in the event that the group member's employment is terminated or the member ceases for any other reason to be a part of the class eligible for coverage. Application for the individual policy must be made and the first premium paid to the insurer within 31 days after such termination of coverage. In the event that the group policy terminates, or coverage of the employee's class is discontinued, the employee is entitled to convert to an individual policy only if the employee had been covered under the group policy for 5 years. This coverage may generally be limited to $2,000. Application for the individual policy must be made and the first premium paid to the insurer within 31 days after such termination of coverage.
Notice of the right to convert. If a group term life insurance policy requires an application to convert to an individual policy and payment of the first premium within a period specified in the policy, notice of the right to convert must be provided at least 15 days before the expiration date of that time period. If timely notice is not provided, an additional period to exercise the right to convert must be provided. This additional period must ...