BASIC LIFE INSURANCE/ ACCIDENTAL DEATH & DISMEMBERMENT
PPM: 300.50
Issued: NOV 1990
Revised: DEC 1995
I. PURPOSE
A. It is the intention of the College to provide eligible faculty/staff members with Basic Life Insurance and Accidental Death & Dismemberment (BLI/ADD) coverage in order to assist individuals in protecting themselves and their families against their loss of life and/or accidental dismemberment. In addition, voluntary life insurance may be purchased to supplement amounts over what the College provides.(See Policy 300.51 for details on this optional coverage.)
B. The benefits described in this policy are intended only to convey a summary of the most important coverage provisions. In situations where a question or dispute arises, the plan document will be the official and ruling instrument concerning this plan.
II. EFFECTIVE DATE
This policy is effective upon receipt.
III. ELIGIBILITY
This policy applies to full-time faculty and all regularly scheduled staff members who work a minimum of 1462 hours per year.
IV. BENEFIT
A. Effective Date of Coverage
Individuals who meet the established eligibility criteria as stated in Section III above shall have their coverage become effective on the date he/she completes the enrollment form.
B. Amount of Coverage
Please refer to the Summary Plan Description for the amount of coverage an employee is eligible for.
V. COST
Basic Life Insurance and Accidental Death and Dismemberment coverage is paid in full by the College.
VI. STATUS CHANGES
A. Reduction of Hours
If a faculty/staff member incurs a change in status (full-time to part-time) which results in a permanent reduction in hours below the established eligibility criteria (see Section III), the life insurance coverage will cease on the effective date of the status change.
B. Increase in Hours
If a faculty/staff member has their status changed from part-time to full-time and meets the eligibility criteria established in Section III, insurance coverage will be effective with the beginning of the new status change, provided the proper enrollment forms are completed.
C. Terminations/Retirements - Upon separation from the College, the life insurance will cease on the effective date of the termination/retirement.
1. The faculty/staff member may apply to the insurance carrier within 31 days of the date of termination/retirement to convert their basic life insurance to an individual policy up to the amount held at the time of termination/retirement.
2. Should a faculty/staff member die during the time when he/she was entitled to apply for an individual policy as described above, the insurance carrier will pay the benefit under the Group policy that he/she was eligible to convert whether or not the individual had applied for an individual policy.
D. Disability
Employees that are disabled and receiving benefits from the Salary Continuation program will remain covered. However, if the employee remains disabled and begins receiving benefits under the Long Term Disability plan, proof of total disability must be forwarded to the insurance carrier in order for coverage to continue. Please reference the Summary Plan Description for further detail on the information necessary and the procedure to be followed to continue the coverage.
E. Leaves of Absence - Refer to applicable policies pertaining to Leaves of Absence (500.70, 500.71, 500.72. 500.73).
F. Faculty Sabbaticals - When a faculty member is on an approved, scheduled sabbatical from the College, the life insurance coverage will remain at the level which was in force at the time the sabbatical commenced.
VII. REDUCTION/TERMINATION OF BENEFIT DUE TO AGE
Upon the attainment of age 70 by faculty/staff members, life and accidental death and dismemberment coverage may be reduced. Please refer to the Summary Plan description for a reduction schedule.
VIII. BENEFICIARY
Faculty/staff members shall designate a beneficiary (or beneficiaries) for their life insurance coverage. All changes will need to be made in writing, signed and dated and sent to the Human Resource Department.
IX. HOW TO FILE A CLAIM
A. In the event of a loss of life, an accidental injury or disability occurs, the Human Resource Department will need to be notified as soon as possible in order that the insurance carrier be supplied with the proper documentation.
B. While the Human Resource department is available to assist you (or your designated beneficiaries) with ensuring that the proper paperwork is filed on a timely basis with the insurance carrier, the College cannot accept responsibility should claims be delayed or be denied due to lack of timely follow-up or failure to provide requested information.
X. MISCELLANEOUS
A. Imputed Income
Current tax law requires that the cost of an individual's group term life insurance in excess of $50,000 be subject to income tax. This imputed income is determined by applying the current Table of Uniform Premiums for Group Term Life Insurance Policies as released and amended by the Internal Revenue Service. This additional cost is calculated by the Payroll Office and added to each faculty/staff member's gross income and reported to the Internal Revenue Service on their W-2 end of the year statement.
B. Salary Adjustments
When a faculty/staff member receives their annual salary adjustment, a promotion or any change in salary, the amount of basic life insurance coverage will automatically adjust. However, should a loss occur which would result in a claim prior to the faculty/staff member being actively at work under the newly adjusted insurance coverage level, the amount of any applicable claim payment will be based on the previous level of coverage.
C. Future Modifications
While it is the intention of the College to provide Life Insurance coverage for all eligible individuals, the College reserves the right to make any material modification to the plan that it deems necessary, to change the insurance carrier or, if necessary, to cancel the coverage should it prove essential.
XI. FORMS
Contact the Human Resource Department for the appropriate enrollment form and descriptive brochure.