Understanding these words and phrases may be helpful as you read through the information about Term Life insurance.
Active Service
An employee is in active service on a day which is one of the employer’s scheduled work days if either of the following conditions are met.
- The employee is performing his or her regular occupation for the employer on a full-time basis at one of the employer’s usual places of business or at some location to which the employer’s business requires an employee to travel.
- The day is a scheduled holiday or vacation day and the employee was performing his or her regular occupation on the preceding scheduled work day.
An employee is in active service on a day which is not one of the employer’s scheduled work days only if he or she was in active service on the preceding scheduled work day.
Affordable Care Act (ACA)
The federal health care reform legislation that was enacted in 2010, as amended.
Applicable Large Employer (ALE)
An employer that employed, on average, at least 50 full-time employees (including full-time equivalent employees), as defined by the ACA, on business days during the preceding calendar year. Contact Insperity if you have questions concerning ALE determinations and whether you are an employee subject to these rules.
Benefits Eligibility Date
The first date you are eligible to become covered following satisfaction of any required waiting period (as provided in your enrollment materials).
Covered Earnings
For Full-Time employees, Covered Earnings is your base annual salary, plus actual earnings for the previous 12 months. For part-time employees, this is actual earnings for the previous 12 months. If the employee has been employed for less than 12 months, actual earnings will be annualized.
Covered Earnings includes commissions, piece-work and fee based work. It does not include bonuses, overtime pay, special pay or another form of extra compensation.
Domestic Partner
- A person with whom the Employee has a registered civil union or domestic partnership under state law which imposes legal obligations on the parties substantially similar to marriage.
- A person meeting all of the following requirements, with respect to a/an Employee:
- a. Is no less than 18 years of age.
- b. Has not been legally married to any other person within the previous 12 months, and has no Domestic Partner other than the Employee during the previous 12 months, and is the Employee’s sole Domestic Partner;
- c. Is not so closely related by blood to the Employee as to prohibit legal marriage in their state of residence.
- d. Shares a permanent residence with the Employee;
- e. Has resided with the Employee for at least 12 months.
- f. Is interdependent with the Employee in two of the following ways:
- 1. Both partners are registered under any municipal ordinance as domestic partners.
- 2. Both partners are jointly parties to a lease, mortgage or deed.
- 3. Both partners jointly own one or more motor vehicles.
- 4. Both partners jointly own one or more bank or credit accounts.
- 5. The Employee has named the Domestic Partner as attorney-in-fact under a durable power of attorney with authority over health care decisions.
- 6. The Employee has designated the Domestic Partner as a beneficiary under a retirement plan or a life insurance policy.
- 7. The Employee has designated the Domestic Partner as a beneficiary of the Employee’s will.
Such person will continue to be recognized as a Domestic Partner unless and until: (1) the domestic partnership is dissolved under applicable law; or (2) either the Employee or the Domestic Partner marries another person.
Important Note: In order to file a claim for benefits, proof of the domestic partnership as indicated above must be furnished the same as proof of a marriage.
Eligible Employees
The Plan administers two sets of eligibility rules – one for employees of a non-ALE company and one for employees of an ALE company, as described below and in the SPD.
Employees of a Non-ALE Company
You are an Eligible Employee if your benefits package from Insperity includes coverage under the Plan and you are:
- A Full-Time Employee. A full-time employee of Insperity who is working 30 hours or more per week (20 hours in Hawaii) on average.
- A Full-Time Employee on a Leave of Absence. A full-time employee of Insperity who meets the requirements for continuing eligibility during an approved leave of absence.
Employees of an ALE Client Company
You are an Eligible Employee if your benefits package from Insperity includes coverage under the Plan and if you are:
- A Full-Time Employee. A full-time employee of Insperity who is working 30 hours or more per week (20 hours in Hawaii) on average.
- A Part-Time or Seasonal Benefits Eligible Employee. A part-time or seasonal employee of Insperity who is also employed by an ALE Client Company and has been determined to be eligible for benefits as described below.
- An Employee on a Leave of Absence. An employee in either of the two categories described above, who meets the requirements for continuing eligibility during an approved leave of absence.
Eligibility for employees of an ALE Client Company will be determined based on hours worked during the employee’s Measurement Period. Once the employee is determined by Insperity to be eligible for benefits, eligibility will be retained during the Stability Period associated with that Measurement Period (regardless of any changes in hours worked during the Stability Period).
Certain exclusions may apply. Please see the Certificate for more information.
Full Time
Full-time means working a minimum of 30 hours per week (20 hours in Hawaii) on average.
Guaranteed Issue
An amount of insurance you can buy during the application period without having to provide proof of good health.
Maximum Coverage
The highest amount of Term Life insurance that NYL GBS provides to you.
Proof of Good Health
Evidence of your good health. As an example, your responses to medical questions on an insurance application.
Spouse
For the purpose of eligibility for insurance, the lawful spouse of an employee.