Employers have no obligation under New Jersey law to offer life insurance to their employees. However, if group life insurance is offered, certain minimum requirements must be satisfied (NJ Rev. Stat. Sec. 17b:27-68et seq.).
Group characteristics. The group to be insured must consist of no fewer than 10 employees. Eligibility for insurance must extend to all employees or all members of a particular class of employees determined by conditions pertaining to their employment or by a combination of such conditions and conditions pertaining to the family status of the employees. A group may include employees in subsidiary or affiliated corporations, individual proprietors, partners, directors, and trustees (provided they actually perform services for the employer), and retirees.
Employer/employee contributions. The premium for the policy shall be paid by the policyholder either from the employer's funds or from funds contributed by the insured employees, or from both. A policy on which no part of the premium is paid by the insured employees must insure all eligible employees, except those who reject the coverage in writing.
Beneficiaries. Individual group members choose their beneficiaries. The employer may not be named as a beneficiary.
Dependents. Group insurance policies may provide insurance coverage for employees' spouses and minor children. The premium for this insurance may be paid entirely by the employer, entirely by the employee, or by both. If the employer pays the entire premium, 100 percent of those eligible must be covered. In determining who is eligible for this coverage, individuals whose evidence of insurability is unacceptable are not counted. The amounts of insurance on a ...