Is an Employer obligated to notify an Employee of conversion rights in the event he is terminated and the employer sponsors a group life insurance plan? Would this be covered by COBRA or by the terms of the contract? In other words, Is there a legal obligation to notify and permit a terminated employee to continue his life insurance... Please help

The obligation exists. It is based on the contract and not on COBRA -- COBRA doesn't cover life insurance.

Others may want to comment on the timing of the notice: should the employer give notice at the time of termination, or is reliance on the SPD sufficient?

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Jim Davis

It is my opinion (I am not an attorney):

a. COBRA doesnot apply to group life insurance, and

b. most states require a group life contract to have a conversion policy. The notice requirement differs by state, as do other provisions of the policy. In Pennsylvania, for example,

Written notice must be given to a person entitled to the issuance of an individual life insurance policy at least 15 days before the expiration date. If such notice is not given, the
person has an additional period of 15 days after notice is given, but the additional period may not extend beyond 60 days after the expiration date of the period provided for in the insurance policy. Written notice must be presented to the person or mailed by the
policyholder or insurer to the person's last known address.



[This message has been edited by Larry M (edited 03-31-99).]