Products April 16, 2003

Fortis Launches Basic Insurance Package

April 16, 2003 (PLANSPONSOR.com) - Fortis Benefits Insurance Company has unveiled a new package of basic workplace insurance policies.
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According to a news release, the Fortis Simple Benefits Solutions includes basic life, accidental death and disability coverage. The company said rates are age-based in three categories: under age 40, 40 to 54, 55 and older.

The SBS package includes:

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  • life insurance with a $25,000 benefit amount; an 80% Accelerated Death Benefit available for patients with terminal medical conditions; a two-year waiver for life insurance premiums if the insured is disabled
  • a $75,000 accidental death and dismemberment (AD&D) benefit with an additional higher education benefit; an AD&D rider providing additional benefits if death occurs in an auto accident while the insured is wearing a seat belt; and disability coverage with a 30-day qualifying period, two-year benefit duration and benefit amount of 60% of pre-disability pay, up to a maximum of $1,000 a month. Benefits reduce automatically at age 70 and again at age 75.
Compliance April 15, 2003

EBSA Clears Up SOX Loan Impact

April 15, 2003 (PLANSPONSOR.com) - The Department of Labor's Employee Benefits Security Administration (EBSA) has issued clarification on plan loans impacted by provisions of the Sarbanes-Oxley Act of 2002.
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>Specifically, EBSA notes in Field Assistance Bulletin (FAB) 2003-1 that restrictions on pension plan loans to officers and directors of the plan sponsor do not violate the participant loan rules under the Employee Retirement Income Security Act (ERISA).  

>Under ERISA, participant loans offered by pension plans must be available to all participants and beneficiaries on a reasonably equivalent basis.   EBSA said that, given the uncertainty as to whether loans to officers and directors of a plan sponsor are permissible under the Securities Exchange Act of 1934 as amended by the Sarbanes-Oxley Act of 2002, the department concluded that restricting loans to such individuals would not violate the requirement that loans be made available to all participants and beneficiaries on a reasonably equivalent basis.

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>Field Assistance Bulletins are available on the Internet at www.dol.gov/ebsa

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