If you are an employer offering life insurance / disability benefits to your employees (i.e., all employers), you need to be aware of a recent Department of Labor (DOL) enforcement action…
Specifically, the DOL settled with a well-known life insurer requiring new guidelines for employee-paid supplemental life insurance that is subject to Evidence of Insurability (EOI).
The DOL noted that it “urges all insurers to examine their practices to ensure that they aren’t engaged in similar conduct.”
Accordingly, employers should think twice before taking premium payments via payroll until they know that EOI requirements have been satisfied.
A review of your billing arrangement with your carrier(s) may be advisable at this time.