by Guest » Sat Nov 21, 2009 12:12 am
I am a revenue producing employee for a service company. the company wants to take out a keyman policy on me, so that if something were to happen to me, they would be reimbursed for the lost revenue and cost of replacing me. they are going to pay the premium and be the beneficiary. What are my obligations? I don't want to do anything to put my family in jeopardy and honestly find it kind of morbid that my company wants to "profit" in the case of my death.
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Posted: Fri Jan 06, 2012 04:30 pm Post Subject:
I don’t know about Nevada laws but under the COLI Best Practices Provision, it is stated that:
The Employee must, prior to the issuance of the insurance contract:
1. Be notified in writing that the employer intends to insure the employee’s life and the maximum face amount for which the employee could be insured at the time the contract is issued.
2. Provide written consent to be insured under the contract during and after active employment.
3. Be informed in writing if the employer will be a sole or partial beneficiary of any death benefits.
Ref: http://en.wikipedia.org/wiki/Corporate-owned_life_insurance#1990s_to_present:_Limited_reform :oops:
Posted: Thu Jan 12, 2012 03:20 am Post Subject:
Changes to federal law in 2006 now require that employees must give consent to be insured and must be given a disclosure that they or their heirs are not entitled to any portion of the policy proceeds, unless that is not the case. It applies in Nevada and all other 49 states, the DC, Puerto Rico, Guam, the Marshall Islands and other territories and possessions of the US.
Posted: Thu Jul 04, 2019 05:00 pm Post Subject:
Honestly speaking, I don't think key man insurance policy is going to hurt any of your family member in case of death etc. The premiums are only paid by the business owners to cover their loss in case of life loss of their key business generator or the case of disability. Here, you can also read thoroughly about this insurance from My Key Man Insurance Policy and how it works. Again, you don't really need to worry more.
Posted: Tue Nov 12, 2019 05:07 pm Post Subject:
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