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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. North Dakota law covers group life insurance, which provides, for example, the following:
Grace period of 31 days.
If the insurance ceases because of termination of employment, the insured is entitled to have issued, without evidence of insurability, an individual policy, provided application for the individual policy is made, and the first premium paid to the insurer, within 31 days after the termination.
If the group policy terminates, every insured at the date of termination whose insurance terminates, and who has been so insured for at least five years prior to the termination date is entitled to have issued an individual policy.
When active employment is a condition of insurance, the policy must include a provision that an insured may continue coverage during the insured's total disability by timely payment of the premium that would have been required had total disability not occurred. The continuation must be on a premium paying basis for a period of six months from the date on which the total disability started.
If any covered individual becomes entitled under the to have an individual policy issued without evidence of insurability, and if the individual is not given notice of the existence of the right at least 15 days prior to the expiration date of the period, then the individual has an additional 15 days to exercise that right after the individual is given notice. The written notice must be provided to the individual in person, by mail to the last known address, or included in a certificate provided to each employee or notice provided by the attachment of a separate notice to the certificate.
North Dakota also has laws governing prepaid legal services plans. The provisions include that all contracts or other documents evidencing coverage issued by the prepaid legal services organization to participants and marketing documents purporting to describe the organization's prepaid legal services plan must contain:
A complete description of the legal services to which the participant is entitled.
The predetermined periodic rate of payment for legal services, if any, which the participant is obligated to pay.
All exclusions and limitations on services to be provided, including any deductible or copayment feature and all restrictions relating to preexisting conditions.
All criteria by which a participant may be disenrolled or denied reenrollment.
State
Contact
North Dakota Insurance Department
Regulations
North Dakota Century Code, Title 26.1, Chapter 26.1-33, §26.1-33-11 Group Life Insurance
North Dakota Century Code, Chapter 26.1-19 Prepaid Legal Services
Federal
Contact
Employee Benefits Security Administration (EBSA)
Regulations
29 CFR chapter XXV (Parts 2509 – 2590)