Employers have no obligation under New York 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 (NY Insurance Law Sec. 3220, Sec. 4216).
Group characteristics. The group eligible to be insured must consist of all employees or all members of a class of employees that is defined by employment-related factors. All new employees of the employer in the groups or classes eligible for such insurance must be added to the groups or classes for which they are eligible. Eligible employees may include the officers, managers, employees, and retired employees of the employer, and of subsidiary or affiliated businesses.
Beneficiary. The employee may name anyone except the employer as beneficiary.
Employer/employee contributions. Premiums may be paid entirely by the employer, entirely by the employee, or jointly by the employer and the employee. If employees are required to pay all or part of the cost, a minimum of 50 percent or five of such eligible employees, whichever is fewer.
Family coverage. Coverage may be extended to the employee's spouse, dependent children, and other persons dependent on the employee. Coverage of a spouse or other person(s) dependent on the employee may not exceed the amount of insurance for which the employee is eligible, and coverage per child may not exceed $25,000.
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; the member ceases, for any other reason, to be a part of the class eligible for coverage; or the policy is terminated. Converted ...