108th CONGRESS
1st Session
H. R. 414
To deem the nondisclosure of employer-owned life insurance coverage
of employees an unfair trade practice under the Federal Trade Commission Act,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
January 28, 2003
Mr. GREEN of Texas introduced the following bill; which was referred to the
Committee on Education and the Workforce, and in addition to the Committee
on Energy and Commerce, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall within
the jurisdiction of the committee concerned
A BILL
To deem the nondisclosure of employer-owned life insurance coverage
of employees an unfair trade practice under the Federal Trade Commission Act,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Life Insurance Employee Notification Act'.
SEC. 2. DISCLOSURE OF EMPLOYER-OWNED LIFE INSURANCE COVERAGE OF EMPLOYEES.
(a) WRITTEN NOTICE REQUIRED- Except as provided in subsection (b), not later
than 30 days after the date on which an employer purchases an employer-owned
insurance policy on the life of an employee (or a spouse or dependent of the
employee), the employer shall provide to each employee for whom the employer
carries such a policy a written notice that contains the following information:
(1) A statement that the employer carries an employer-owned insurance policy
on the life of the employee.
(2) The identity of the insurance carrier of the policy.
(3) The benefit amount of the policy.
(4) The name of the beneficiary of the policy.
(1) NOTICE TO FORMER COVERED EMPLOYEES- For former employees covered by
an insurance policy described in subsection (a), for any length of time,
from January 1, 1985, until the date of enactment of this Act, the employer
shall provide the notice required under that subsection not later than 1
year after such date of enactment.
(2) NOTICE OF EXISTING COVERED EMPLOYEES- For employees covered by an insurance
policy described in subsection (a) as of the date of enactment of this Act,
the employer shall provide the notice required under that subsection not
later than 90 days after such date of enactment.
(c) ENFORCEMENT- A violation of this section constitutes an unfair method
of competition and an unfair or deceptive act or practice under section 5(a)(1)
of the Federal Trade Commission Act (15 U.S.C. 45(a)(1)).
(d) EMPLOYER-OWNED INSURANCE POLICY DEFINED- The term `employer-owned insurance
policy' means an insurance policy purchased by the employer for the benefit
of a person other than the individual who is the subject of the policy (or
other than a person designated by such individual).
END
