I think I've gathered the answer to this question from previous posts, but would very much appreciate the group's wisdom on the following scenario:

An employee on LTD applies for and receives a premium waiver under the group-term life insurance policy. While the employee is still on LTD, the employer switches group-term life insurance carriers.

It's my understanding the the carrier which granted the premium waiver ("old carrier") remains responsible for this employee's coverage. Is that correct?

I'm in the process of getting a copy of the contract with the old carrier to confirm, but can anyone confirm that this is generally how it works?

Many, many thanks and happy holidays,

Julie

You are correct. The carrier that granted the waiver is on the hook. Typically when a group policy has a disability waiver of premium the rates are loaded for this possible libility.

Agreed.

You will need to read the contract. We have a self-insured waiver of premium, whereby the company continues to pay the premium due as long as the participant meets the carrier's definition of disabled. All insurance forms, approval letters, etc. refer to it as "waiver of premium." To the employee the continuation is identical to a fully insured waiver of premium, but it really isn't. The advantage to us is that by self-insuring the disability continuation, we have lowered our premium overall. The advantage to the carrier is that if we should switch carriers, our disableds go with us to the new carrier.