Employers have no obligation under Colorado 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 (CO Rev. Stat. Sec. 10-7-201et seq.).
Group characteristics. There is no minimum group size. The group must include all employees belonging to the class defined as eligible for coverage. Insurance must be offered in amounts determined by some plan that precludes individual selection.
Employer/employee contributions. Premiums for group life insurance policies may be paid entirely by the employer, entirely by the insured employees, or partly by the employer and partly by the insured employees.
Premium payment. The policyholder is entitled to a grace period of 31 days to make premium payments (except for the first payment). During the grace period, coverage continues in force unless the policyholder gives the insurer written notice of discontinuance. The policy may provide that the policyholder is liable for the payment of a pro rata premium for the time the policy was in force during such grace period.
Coverage of family members. Group life insurance policies may be extended to cover insured employees' spouses and dependents.
Conversion. Employees and dependents are guaranteed the right to convert group coverage to an individual policy in the event that the worker's employment is terminated or the individual ceases for any other reason to be a member of the class eligible for coverage. The coverage provided by the individual policy may not exceed the amount of life insurance under the terminated policy.
If a group policy terminates or is amended to terminate the insurance of any ...