Employers have no obligation under Pennsylvania 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 (PA Stat. Tit. 40 Sec. 532.1et seq.).
Group characteristics. The group to be insured must consist of no fewer than two people. The group must include all employees or all employees belonging to the class or classes defined (based on conditions related to employment) as eligible for coverage. The policy may provide that the term “employees” includes the employees of one or more subsidiary corporations and the employees, individual proprietors, and partners of one or more affiliated corporations, proprietorships, or partnerships under common control. The term “employees” may also include the individual proprietor or partners (if the employer is an individual proprietorship or partnership) and retired employees. If a policy reserves the right to require a person to furnish evidence of individual insurability, it must set out the conditions under which such a requirement will apply.
Beneficiary. The employee may name anyone except the employer as beneficiary.
Employer/employee contributions. Employers are not required to make a contribution toward the cost of group insurance. If the employer pays the entire cost, all employees in the eligible class, except those determined to be uninsurable, must be covered by the policy.
Dependents. The policy may be extended to cover employees' spouses and financially dependent children.
Conversion. Employees, as well as their spouses and dependent children, are guaranteed the right to convert group coverage to an individual policy in ...