Employer failed to enroll employee in group life

[Xpress]

What is the name of your state?Pennsylvania. Employer's offer letter included $10,000 life insurance policy with employer paying costs of coverage. Employee never submitted forms electing a beneficiary. It is unknown if the employer ever provided the forms to the employee. Employee died 2 years into employment. Employer is now saying that employee failed to apply for the free coverage and no insurance coverage existed. Since the insurance was free to employee, isn't employer obligated to obtain certificate of insurance even if no beneficiary form is completed? Is employer liable for the $10,000 benefit?

 

[Beth3]

Since the insurance was free to employee, isn't employer obligated to obtain certificate of insurance even if no beneficiary form is completed? There is undoubtedly still enrollment/beneficiary paperwork the employee is obligated to complete and return to the employer in order to be a participant. Apparently the deceased never did so.

Is employer liable for the $10,000 benefit? Unlikely but without seeing the Plan Document/insurance contract describing the terms and conditions of eligibility and participation, it's impossible to say for certain.

 

[cbg]

Since the insurance was free to employee, isn't employer obligated to obtain certificate of insurance even if no beneficiary form is completed?

Of course not. Just because it's free to the employee, doesn't mean the employee is released from their obligations to complete the required paperwork.

Is employer liable for the $10,000 benefit?

Again, I don't see why. If the employee failed to complete the forms required, their is no liability to provide the benefit.

If the employee didn't fill out the forms, for all the employer knows, the employee didn't WANT the coverage. Some people don't.

 

[Dandy Don]

So have you contacted the insurance company to find out if what the employer says is true or not? Just because the beneficiary form wasn't completed doesn't mean he hadn't previously paid the policy premiums or had them deducted from his paycheck, and under some circumstances if there is no beneficiary the money can be made payable to his estate (it just depends on the insurance company's policy). You have no way of knowing if what the company is telling you is true or not.

If you can't speak to the insurance company directly, then file a complaint with your state's insurance commissioner to have HIM investigate this.

DANDY DON IN OKLAHOMA ([email protected])

 

[cbg]

Don, since the benefit was supposed to be free to the employee, just why would the employee be paying any premiums or having anything deducted from his paycheck?

 

[Dandy Don]

You make an excellent point, CBG. Of course there would be no need for payroll deductions and I had not read the posting closely enough to figure that out and you are correct.

Even though no beneficiary form was filled out I still think the poster needs to check with the insurance company to try to determine if the employer made premium payments anyway to cover this gentleman and what the payout procedure is when no beneficiary is named.