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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, and Maine has laws governing group life insurance and group legal services insurance.
Some of the group life insurance provisions in Maine include the following:
- The employer may not be the beneficiary.
- The premium for the policy shall be paid either from the employer's funds or from funds contributed by the insured employees, or from both.
- There is a 31-day grace period.
- If coverage ceases because the employee is terminated, the employee is entitled to have an individual policy issued without disability or other supplementary benefits, provided application is made, and the first premium paid to the insurer, within 31 days after the termination.
- If the group life insurance policy terminates the insured at the date of such termination, including covered dependents, and who has been insured for at least five years prior to termination, is entitled to have an individual policy issued.
- The policy may not be more restrictive coverage for death resulting from AIDS, than the death resulting from any other disease or sickness.
If organizations offer group legal services insurance, they must comply with Chapter 38 of Title 24-A of the Maine Insurance Code. Under these requirements, beneficiaries of legal services insurance are not to be required to select an attorney other than one of the beneficiary's own choosing.
State
Contact
Regulations
Maine Revised Statutes
Group life insurance: Maine Insurance Code, Title 24-A, Chapter 31 www.mainelegislature.org/legis/statutes/24-A/title24-Ach31sec0.html
Group legal services insurance: www.mainelegislature.org/legis/statutes/24-A/title24-Ach38sec0.html
Federal
Contact
Employee Benefits Security Administration (EBSA)
Regulations
29 CFR chapter XXV (Parts 2509 – 2590)