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Summary of differences between federal and state regulations
The differences are called out below, and represent where the state goes beyond the federal requirements under ERISA.
State
Contact
Alabama Department of Insurance
Regulations
Alabama has requirements for life insurance benefits. These are found at the Code of Alabama, §27-18-1 et seq.
The provisions Benefits Managers may be interested in include the following:
The grace period is 30 days. (Code of Alabama §27-18-3)
The validity of the policy cannot be contested after it has been in force for two years from its date of issue. (Code of Alabama §27-18-4)
If an employee terminates employment, he or she is entitled to have an individual life insurance policed issued without evidence of insurability. The application for the individual policy need to be made and the first premium paid within 31 days after termination. (Code of Alabama §27-18-11)
If the policy terminates, employees who were covered for the last five years are entitled to an individual policy. (Code of Alabama §27-18-12)
Federal
Contact
Employee Benefits Security Administration (EBSA)
Regulations
29 CFR chapter XXV (Parts 2509 – 2590)