2013 Group Benefits Employer Markets Legislative Notice

Transcription

1 2013 Group Benefits Employer Markets Legislative Notice Employee Version Note: The purpose of this Notice is to provide an overview of new laws passed in 2013 that may impact your insurance policy. These laws apply to the extent that your policy has the applicable provisions in the contract. DISCLAIMER: The Hartford provides this Notice for informational purposes only. This Notice includes information that may impact policies issued by The Hartford, but does not constitute legal advice. You should continue to consult your employer s legal and HR resources for guidance on the application of the law(s) cited in this Notice. Dependent Coverage The federal government now recognizes legally married same-sex couples as being married under federal laws. As a result, dependent spouse coverage under a Hartford policy is available to same-sex spouses as long as you and your same-sex spouse were legally married in a state that allows same-sex marriage. Your state of residence is not relevant for purposes of eligibility for dependent spouse coverage. The following list of states passed legislation in 2013 affording same-sex couples the right to enter into a same-sex marriage. In the states noted below, the identical rights of opposite sex marriages (including insurance benefits) are now extended to same-sex marriages. In addition, one state, Colorado, as of January 1, 2014, now allows two unmarried adults, regardless of gender, to enter into a civil union and receive insurance benefits. State Date that Same-Sex Marriage Becomes Legal California June 28, 2013 Delaware July 1, 2013 Hawaii December 2, 2013

2 Illinois June 1, 2014 Maine December 29, 2013 Maryland January 1, 2013 Minnesota August 8, 2013 New Jersey October 21, 2013 Rhode Island August 1, 2013 Washington December 9, 2012 Dependent Coverage Children State: Minnesota Effective Date: 05/25/2013 For Standalone Accidental Death & Dismemberment plans, Minnesota recognizes the following individuals as a dependent and therefore eligible for dependent coverage: employee s spouse an unmarried child under the age of twenty-five (25); a child of any age who is disabled and is: (a) incapable of self-sustaining employment by reason of developmental disability, mental illness or disorder, or physical disability and (b) chiefly dependent upon the employee or member for support and maintenance; a child for whom the employee or the employee s spouse has been appointed legal guardian and an adoptive child under Minnesota law; a grandchild who is: (a) financially dependent upon a covered grandparent; and (b) resides with that covered grandparent continuously from birth. The grandchild s coverage may terminate: (a) if the grandchild does not continue to reside with the covered grandparent continuously from birth; (b) if the grandchild does not remain financially dependent upon the covered grandparent; or (c) when the grandchild reaches age 25, except if disabled or if the coverage is continued; and any other person whom state or federal law requires to be treated as a dependent for purposes of health plans. 2

3 Discretionary Clauses State: Rhode Island Effective Date: 07/21/2013 Rhode Island prohibits policies from containing a provision that gives an insurance company sole discretion in determining eligibility for benefits or in interpreting the terms of the policy or certificate. Any such provisions in effect as of June 17, 2013 under policies governed by Rhode Island law are now void and unenforceable. Disclosure Language State: New York Effective Date: 8/1/2013 New York consolidated its Insurance and Banking Departments into the Department of Financial Services. As a result, the disclosure language for The Hartford contracts will be updated to replace references to the New York Insurance and Banking Department with the New York Department of Financial Services. Guaranty Association Notices The purpose of the Life and Insurance Guaranty Associations is to provide you with a limited benefit in the event that the insurance company becomes insolvent and can no longer pay claims. Each state provides coverage under its Life and Insurance Guaranty Association for each certificate holder under a group insurance policy. All insurance companies (with limited exceptions) licensed to write life and health insurance or annuities in these states are required, as a condition of doing business in the state, to be members of the Guaranty Association. The Hartford is required by law to provide the Guaranty Association Notice as a means of informing policyholders of the existence and purpose of the Guaranty Association. Arkansas, Indiana, Missouri, North Carolina, and Nevada have made changes to their Guaranty Association coverage limits, summarized in the table below. 3

4 State Type of Insurance Coverage Limit Arkansas Accident and Indiana Life $300,000 (but not more than (other than disability insurance, basic hospital, medical, and surgical insurance, major medical insurance, and long-term care insurance) $100,000 (including net cash surrender and net cash withdrawal values) (basic hospital, medical, and surgical insurance or major medical insurance) Annuities $250,000 (including net cash surrender and net cash withdrawal values) Missouri Life $300,000 (but not more than North Carolina (other than disability insurance, basic hospital, medical, and surgical insurance, major medical insurance, and long-term care insurance) (basic hospital, medical, and surgical insurance or major medical insurance) $100,000 (including any net cash surrender and cash withdrawal values) $300,000 Nevada Life $300,000 (but not more than 4

5 Annuities (other than disability insurance, basic hospital, medical, and surgical insurance, major medical insurance, and long-term care insurance) $250,000 (including net cash for surrender and withdrawal) $100,000 (including any net cash for surrender or withdrawal) (basic hospital, medical and surgical insurance or major medical insurance) Life ( With respect to one owner of several non-group policies of life insurance, whether the owner is a natural person or an organization and whether the person insured is an officer, manager, employee or other person) $5,000,000 The Hartford is The Hartford Financial Services Group, Inc. and its subsidiaries. 5