SENATE BILL REPORT

HB 854

BYRepresentative Lux

Requiring insurers to allow conversion of group term insurance.

House Committe on Financial Institutions & Insurance

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):February 18, 1988

Senate Staff:Walt Corneille (786-7452)

AS OF FEBRUARY 16, 1988

BACKGROUND:

Companies that provide group life insurance coverage to employees are required to allow an employee whose group insurance plan is terminated to purchase an individual insurance policy.  The employee may purchase any individual policy of a form customarily issued by the insurer except term insurance.  Term insurance is a policy providing life insurance for a fixed amount of time without any investment or savings features such as are provided with "whole life" and other similar policies.

SUMMARY:

An employee whose group life insurance plan is terminated and who chooses to purchase an individual policy may purchase a term insurance policy as well as others offered by the insurer.

Appropriation:  none

Revenue:   none

Fiscal Note:    none requested