The Number 31 - 05.09.2016

Did you know that most administrative functions of a group employee benefits plan have a 31 day deadline?

New Employees

You have 31 days from the expiration of the plan’s eligibility waiting period (if applicable) to enroll a new employee in the plan. If an employee enrolment form is not completed and signed within 31 days of the employee becoming eligible for coverage, the insurance company will consider the employee to be a late applicant. A late applicant must submit proof of good health and must be approved by the insurance company before coverage may begin. An employee may be declined on the basis of their medical history. If approved, the employee would be subject to the late applicant restrictions laid out in your group policy.

Changes in Coverage Status or Maintaining Dependents

  • A change from single coverage to family coverage
  • A change from family coverage to single coverage
  • A loss of spousal coverage requiring a change from waiving coverage to single/family
  • Adding a new dependent (spouse or child)

All of the above require you to submit a completed and signed employee change form within 31 days of the life changing event. Failure to do so may result in having the new dependent considered a late applicant. The late applicant restrictions that apply to a new employee would also apply to a dependent.

Premium Payments

Most insurance companies operate on the basis that premiums for the month are due on the first day of that month with a 31 day grace period for payments to be received. If payments are not received within the 31 days, the insurer typically reserves the right to suspend the payment of the employees’ submitted claims.

Conversion of Group Life Insurance

If any or all of an employee's life insurance terminates, the employee may be eligible to apply for an individual conversion policy without being medically underwritten, within 31 days. This privilege may be beneficial for older or otherwise uninsurable employees who find themselves without personal life insurance.