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Administration of Group Life Insurance – Not So Easy? | Dickinson Wright


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Group life insurance is perhaps the most common of the benefits provided by employers who sponsor employee benefit programs. Many times employees are given the opportunity to purchase supplemental coverage in addition to the employer-provided basic benefit.
Administering a group life insurance plan is easy – right?  It’s just a matter of enrolling the employee, obtaining a beneficiary designation form, calculating the premium, and remitting the premium to the insurer.  What can go wrong?
Occasionally, things do go wrong, and employers find themselves having to pay a life insurance benefit from their own coffers when a beneficiary pushes back against a claim denial.  Following are three examples of situations where this could happen. ....

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