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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. Texas has laws governing group life insurance and legal insurance. Employer contribution is required. The employer can not be the beneficiary. The policy must cover at least 10 employees on the date the policy is issued. For policies delivered or renewed on or after January 1, 2006, the policy must cover at least two employees on the date the policy is issued.(Effective September 1, 2005, §1131.204.)
If insured employees are to pay part of the premium, at least 75 percent of the employees eligible on the date the policy takes effect, must elect to make the required contributions. If the insured employees do not pay any part of the premium, the policy must insure all eligible employees; or all eligible employees except any employees as to whom evidence of individual insurability is not satisfactory to the insurer.
There is a 31 day grace period.
State
Contact
Regulations
Texas Insurance Code, Title 7, Subtitle B, Chapter 1131 Group Life Insurance and Wholesale, Franchise, or Employee Life Insurance
Federal
Contact
Employee Benefits Security Administration (EBSA)
Regulations
29 CFR chapter XXV (Parts 2509 – 2590)