Disability: Switch in life insurance carriers

[Felicia]

If an employee becomes disabled and the company changes life insurance carriers during the period of disablity: is the employer obligated to cover the person with the new carrier? inform the disabled that there is a change of carriers? if he's not obligated to cover the person, must he give the disabled the option to take out coverage on his own? is life insurance coverage covered by COBRA? can the employer who failed to cover such person, now say that the person was terminated on the first day of disability? In essence, I'd like to know basics before approaching legal counsel. Cites would be helpful. Thanks. PS The employer has about 75 employees and is centrally located.

[KIP KRAUS]

1. The disabled employee will more than likely be required by the new carrier to be actively at work in order to get coverage. I have never, in over 20 years heard of any regs. state or fed. That require the employer to cover anybody in this instance. Then again, I don’t know what each stet may do.

2. All affected employees should be informed of change in carrier, including the disabled ones.

3. Options for coverage are governed by the group insurance policy. Check the policy. They could be covered by disability waiver of premium, or disability continuation of coverage, or a conversion privilege.

4. Group life is not a COBRA coverage.

Why not ask the insurers? They should have all of this information. Employers change group life carriers every day even when employees are out on short-term disability and don’t encounter problems.