Group coverage refers to an insurance policy that covers a group of individuals, usually members of an association or employees under a certain employer. Because of the bulk quantity of individual insurance coverage that may be contained in a group policy the overall price of the coverage for each individual is markedly cheaper than if each were to buy into a separate plan.
It is important to note that the Uniform Accident and Sickness Policy Act, generally, does not apply to group disability insurance. Thus, since most employees have their short- and long-term benefits under a group coverage plan most of the statutory provisions in the relevant legislation do not apply.
In terms of group coverage, there is always a master policyholder, which is usually the employer or the association that is purchasing the group policy for its members. These group policies can be mandatory or voluntary – it varies from employer to employer.
A large number of group disability insurance policies expire after thirty-one (31) days after termination. Thus, employees may find themselves in the position where they develop the disability outside of the thirty-one (31) day period and are no longer eligible for long-term disability coverage.
Group coverage plans are fraught with legal intricacies that escape many individuals seeking legal advice and, more importantly, lawyers who do not deal with employment and disability related issues on a regular basis.
If you are disabled and are denied group coverage, we strongly urge you to contact our firm for immediate consultation. Zeilikman Law has garnered the in-depth experience required to provide high quality assistance to those dealing with issues arising out of group coverage plans.