EOI tracking - Group Term Life issues

deanna-plant

Our benefit teams follows the following steps for anyone requesting life insurance over the guaranteed issue amount and/or over the amount they have previously been approved for:

 

1. Stop the life supplemental amount they requested as of the same date it was effective.  Ie: Start and stop date are both 01/01/17
2. Put a “P” for “Pending” in the EOI field for Evidence of Insurability on this line
3. Add a new line with the life supplemental amount the employee is automatically approved for with a start date after the pending amount.  Ie: Start date of 01/02/17 with no stop date.
4. Put an “A” for “Approved” in the EOI field for Evidence of Insurability on this Life supplemental line  (BN32)
5. Put an “A” for “Approved” in the EOI field for Evidence of Insurability on the life base enrollment line  (BN32)

We are running our BN150 for Group Term Life and it is overstating the Excess Employee Life because of the stopping of the original election (#1) and the starting of the automatically approved enrollment (#3).  Couple questions:

1.  Are others handling the approval process in this manner?  And if so, is your BN150 amount being overstated?

2.  If you are not following the steps above, what are you doing?

Thank you 

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For the pending EOI process we have a separate plan set up for the pending amount. The employee would have their approved Supp Life (SUPP) plan which the BN150 would be based on and then they would have a separate plan for the Pending amount (plan PSUP) that they are doing EOI for. This makes reporting easier and for tracking who has not completed their EOI. When they are approved we end the pending plan with the date they were approved and stop and restart the SUPP plan with the new amount. If they are denied we end the Pending plan with the date they were denied and nothing needs to change with the SUPP plan.

0712131256598360.doc