An employer providing employee group insurance benefits signs a contract with a life insurance company. The contract is based on both parties' agreement to provide accurate information and to fulfill specific obligations.
It is the contract that determines eligibility for and termination of benefits. The insurer most frequently is the adjudicator of claims and if an employer wishes to vary the eligibility requirements, they must first request the agreement of the insurer. An employer should never guarantee coverage without approval from the insurer. Your Human Resources department, or the individual responsible for hiring and termination, should be cautious about potential liability issues. Employment issues frequently intercept with group insurance issues. Beware of creating potential liabilities. For more information call us.
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