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Summary of differences between federal and state regulations
Employee benefits are generally covered under the federal jurisdiction of the Employee Retirement Income Security Act (ERISA).
Federal ERISA plans generally do not have to comply with state laws. ERISA rules preempt or block state laws that relate to ERISA plans. State insurance laws, however, do apply. Louisiana has laws governing group life insurance. A summary of the provisions for life insurance include the following:
The policy can cover as few as one employee at date of issue.
- The policy premium must be paid by either wholly from the policyholder's funds or funds contributed by him, partially from such funds and partially from funds contributed by participants, or from funds contributed entirely by participants.
- Companies may have policies on which all or a part of the premium comes from funds contributed by the covered employees may be placed in force. Policies on which no part of the premium comes from funds contributed by the covered employees must insure all eligible employees, except those who are uninsurable to the insurer. An insurer may, but cannot be required to, establish a percentage of eligible employees who are required to enroll and participate in a group policy if the entire premium is not paid by the employer.
The employer cannot be the beneficiary.
Policies, may, if seventy-five percent of the then insured employees who have eligible dependents choose, be extended to insure the spouse and minor children.
There is a grace period of thirty days or one month.
If the coverage ceases because of termination of employment individuals are entitled to have issued, without evidence of insurability, an individual policy provided application for the individual policy is made and the first premium paid within thirty-one days after termination.
If the group policy terminates, all covered individuals at the date of such termination who have been covered for at least five years prior to the termination date are entitled to have issued individual policies.
State
Contact
Louisiana Department of Insurance
Regulations
Louisiana Revised Statutes
Federal
Contact
Employee Benefits Security Administration (EBSA)
Regulations
29 CFR chapter XXV (Parts 2509 – 2590)