AGO 1990-017.

Case DateMay 30, 1990
CourtConnecticut
Connecticut Attorney General Opinions 1990. AGO 1990-017. May 30, 1990Opinion No. 1990-017Honorable J. Edward CaldwellOffice of the Comptroller55 Elm StreetHartford, CT 06106Dear Mr. Caldwell: This office has been asked to respond to two questions concerning life insurance coverage for retirees. Specifically, you have asked (1) whether the letter sent by the Comptroller's Office to retirees provides adequate notice to such retirees of the reduction in life insurance coverage that occurs upon retirement and (2) what benefit amount would a retiree receive who dies prior to receipt of the aforementioned letter from the Comptroller's Office. These questions were prompted by the large number of employees who retired under the State's recent early retirement program. Life insurance for State employees and retirees is governed by Conn. Gen. Stat. e§5-257. Subsection (d) of e§5-257 provides in part: The insurance of any employee insured under this section shall cease on termination of employment ... subject to any conversion privilege provided in the group life insurance policy or policies. Notwithstanding anything to the contrary in this section, the amounts of life insurance of insured employees retired in accordance with any retirement plan for state employees shall be as follows: ... [specific reduced coverage provisions omitted]. In no case shall a retired employee be required to contribute to the cost of any such reduced insurance. Thus, under the provisions of e5-257, the amount of insurance provided a retiree by the group policy is lower than the amount provided the individual while the individual was employed by the State. However, as allowed by e5-257, the State's group life insurance policy with Aetna provides a conversion privilege. Under the conversion privilege a retired state employee may elect to convert his group policy to an individual policy and purchase additional insurance coverage up to the amount of insurance coverage the retiree had under the group policy while an employee of the state. The conversion privilege must be exercised within 31 days of retirement, and during that 31 day period, if an employee dies, his beneficiary is entitled to receive the maximum benefit possible as if the maximum conversion privilege had been exercised. In response to your first question, there is no requirement in the State...

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