Employers have no obligation under Indiana 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 (IN Code Sec. 27-1-12-37).
Group characteristics. The group to be insured may consist of any number of people, but it must include all employees belonging to the class defined as eligible for coverage. 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.
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 must be covered.
Dependents. Employees have the right to elect coverage to insure their spouses and dependent children. If the employer pays the entire cost, all those eligible except those whom the insurer excludes as uninsurable must be covered.
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.
If the group policy terminates or is amended so that coverage of the employee's ...