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Two companies merge -- one with group life ins coverage, one with individual coverage.

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Two small companies have merged. The new merged company will offer group life insurance coverage, similar to the coverage one of the small companies had. But the other company had individual life insurance policies. The new merged company would like to grandfather those employees, allowing them to keep their individual policies if they would rather not switch to the group life coverage. Can they do that -- or is there a discrimination issue?

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