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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. Virginia law contains provisions regarding group life insurance and legal services insurance.
The following provisions apply to group life insurance:
- Employer contribution is optional.
- The employer cannot be the beneficiary.
- The policy must cover at least two persons.
- There is a 31-day grace period.
If the insurance ceases because of termination of employment, the individual may be issued an individual policy of life insurance without disability or other supplementary benefits, without providing evidence of insurability, if application is made within 31 days after termination.
If the group policy terminates, every insured person who has been insured for at least 5 years is entitled to convert to an individual policy.
The following applies to legal services insurance:
A policy of legal services insurance must contain a provision that the insurer shall issue to the person in whose name the policy is issued, a certificate summarizing the essential features of the insurance coverage and to whom benefits under the policy are payable. If dependents are included in the coverage, only one certificate need be issued for each family unit. §38.2-2300.
State
Contact
Regulations
Code of Virginia
Title 38.2 Insurance, Chapter 33 - Life Insurance Policies, §38.2-3318.1 (et seq.) Group life insurance requirements
Title 38.2 Insurance, Chapter 23 – Legal Services Insurance , §38.2-2300 Legal services insurance requirements
Federal
Contact
Employee Benefits Security Administration (EBSA)
Regulations
29 CFR chapter XXV (Parts 2509 – 2590)