April 2008

Life Insurance Conversion

One feature of our life insurance program is an employee's right to convert to an individual policy when their group coverage terminates. The employee may convert any amount of life insurance up to the amount in force on the last day of group coverage.

Employers are responsible for notifying their employees of their right to convert when employment is terminated. It is the employee’s responsibility to apply for individual coverage. The right to convert is a one-time opportunity, available for only 31 days from the date the group coverage ends. If an employee chooses not to continue coverage with an individual policy, they forfeit their right to do so in the future.

To convert coverage to an individual policy:

CBIA Health Connections customers

1. The employer must complete, date and sign part A of The Hartford's Notice for Conversion Privilege form and submit it to the employee within 10 days of coverage termination.
2. The employee completes the remainder of the form, signs it and submits it to The Hartford within 31 days of the last day that coverage terminates.
3. Upon receipt of the form, The Hartford will provide the employee with a life insurance conversion quote for individual coverage.
4. The employee then decides if they would like to choose the individual coverage based on the quote.

More detailed instructions are included at the beginning of the conversion form.

CBIA/Aetna customers

1. The employer must complete, date and sign page 1 (notice of eligibility statement section) of Aetna’s Conversion of Group Term Life Insurance form and submit it to the employee within 10 days of coverage termination.
2. The employee completes and signs the remainder of the form, then submits it and the initial premium payment to Aetna within 31 days of the last day that the group coverage terminates. Premium can be calculated using the table on page 3 of the form. Payments will subsequently be annual or semi-annual, depending on the converted amount.

Please contact your CBIA sales team if you have any questions.