Many people are offered life insurance coverage through their employment. Usually, employers in such cases act as a liaison between their employees and the insurance company providing group coverage.
Employers’ Human Resources departments are responsible for supervising the life insurance application process, explaining the terms of coverage, informing employees of changes in their group policy, informing employees of their eligibility requirements and, most importantly, distributing a copy of a group life insurance policy to their employees.
In addition, human resources and employee benefits personnel will oversee premium withdrawal from an employee’s paycheck.
If an employee decides to enroll in a group life insurance policy, she has a right to receive a copy of the group policy. Many employers never provide a copy of the group life insurance policy to their employees claiming that no one reads these documents anyway.
If an employee is not given a copy of the policy, how is she supposed to know even the most basic terms of coverage and eligibility requirement?
In the majority of cases, an employer is required under the law to provide a copy of a group life insurance policy to its all employee members. Failure to do so may attach liability to the employer when an employee’s life insurance claim gets denied.
It is not uncommon for an employer to be liable for a wrongfully denied life insurance claim. Our life insurance attorneys represent beneficiaries whose employer-based life insurance claims have been denied.
We investigate a life insurance claim denial to identify all liable parties. We have handled many denied life insurance claims where the insured’s employer played an active role in the claim process. Below are some examples of the cases our life insurance lawyers have handled:
- Employer made misrepresentations about group life insurance coverage start date;
- Employer made misrepresentations about eligibility requirements;
- Employer made misrepresentations about portability and conversion options to an employee who was terminated;
- Employer failed to submit to the insurance company a completed and signed waiver of premium form;
- Employer failed to submit to the insurance company a signed Evidence of Insurability form;
- Employer continued to withdraw group life insurance premiums after the employee stopped being eligible for life insurance coverage;
- Employer made misrepresentations about existence of coverage to an employee who was on a long-term disability leave;
- Employer assured an employee that her life insurance coverage was in force and continued to withdraw life insurance premiums from her paycheck when there was no coverage under the group life insurance policy;
- Employer failed to provide its employees with a copy of the group life insurance policy;
- Employer made misrepresentations to its employees about the manner in which their life insurance benefits were calculated (e.g., based on an hourly rate not including overtime);
- Employer made misrepresentations to an employee about her dependent son’s eligibility for life insurance coverage while there was no coverage under the policy.
The law dictates what duties employers have when they provide group life insurance coverage to their employees. However, many life insurance claims get wrongfully denied because employers breach such duties.
If your claim has been denied or delayed, you may have a claim against the insured’s employer. Call our life insurance attorneys for a free consultation.
Call (888) 510-2212 for a free consultation.