On June 14, the Assembly introduced a bill (A2893) seeking to codify the notice and consent rules regarding employer-owned life insurance (EOLI) that were enacted on the federal level as part of the Pension Protection Act of 2006. These requirements include: notice in writing to the employee that the employer intends to insure the employee’s life and the maximum face amount of the insurance coverage at the time of the policy’s issuance; consent in writing by the employee to being insured under the policy and continuation of coverage following the employee’s termination; and notice in writing that the employer will be a beneficiary of the proceeds payable upon the employee’s death. The bill also imposes an additional notice requirement. Within 90 days of the effective date of the bill, all insurers are required to provide notice to every employee insured under any EOLI existing in New Jersey on the effective date.
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