Employee benefits - Nebraska

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. Nebraska has laws governing group life insurance that provide, for example, the following:

The employer cannot be the beneficiary.

The premium must be paid either wholly from the employer's funds or funds contributed by him or partly from such funds and partly from funds contributed by the insured employees. The entire premium may not be derived from funds contributed by the insured employees. You may have a policy on which part of the premium is to be derived from funds contributed by the insured employees only if at least 75 percent of the then eligible employees elect to make the required contribution. A policy on which no part of the premium is to be derived from funds contributed by the insured employees must insure all eligible employees or all except any as to whom evidence of individual insurability is not satisfactory to the insurer.

The policy must cover at least five employees at date of issue.

The grace period is 31 days.

If the insurance ceases because of termination of employment, the insured is entitled to have issued to him or her, without evidence of insurability, an individual policy if application is made and the first premium paid to the insurer within 31 days after the termination.

If the group policy terminates, every person insured at the date of the termination who has been insured for at least five years prior to the termination date is entitled to have issued to him or her an individual policy.

State

Contact

Nebraska Department of Insurance

Regulations

Nebraska Statutes

Chapter 44 Insurance

§1602 Life insurance; policy issued to an employer; requirements
§1607 Life insurance; policy; contents

Federal

Contact

Employee Benefits Security Administration (EBSA)

Regulations

29 CFR chapter XXV (Parts 2509 – 2590)