Group Insurance Plan
Frequently Asked Questions
- What is the Group Insurance Plan?
- Are there refunds under the Plan?
- What firms are eligible to participate?
- How can I enroll my firm in the AICPA Group Insurance Plan?
- Who may be covered?
- Do we have any waiting periods to choose from for new firm personnel?
- If we elect dependents coverage, which dependents are eligible?
- Does this policy include Accidental Death and Dismemberment Insurance?
- Is there a scheduled amount that the firm must choose from when applying for coverage?
- What happens if a covered individual become disabled?
- At what age does coverage terminate?
Q. What is the Group Insurance Plan?
A. The Group Insurance Plan provides AICPA member accounting firms with a service oriented, efficient and economical means of providing term life, accidental death and dismemberment insurance and disability protection to owners, their firm members and employees.
Q. What firms are eligible to participate?
A. Your firm is eligible if it has its principal office in any state (except Texas), the District of Columbia, American Samoa, Guam, Puerto Rico or the U.S. Virgin Islands. To be eligible (1)the proprietor or at least one partner or firm member of a public accounting firm must be a member of the AICPA or (2) a member or members of the AICPA must have at least 50% ownership in a firm, other than a public accounting firm.
In addition, the firm must have at least one eligible full-time employee, other than the proprietor, partner or firm member, who is to become insured on the date participation begins for the firm.
Q. How can I enroll my firm in the AICPA Group Insurance Plan?
A. To request your firm participation in the AICPA Group Insurance Plan, call the Plan Agent, Aon Insurance Services, at 1-800-223-7473 to request a Group Subscription Form and mail it to: Aon Insurance Services, 159 East County Line Road, Hatboro, PA 19040-9981. You may also fax your form to 1-800-242-7248.
Q. Who may be covered?
A. A proprietor, partners or firm members, and the full-time staff, including all full-time employees, are eligible to request insurance.
Full-time means working in the firm's employ for a minimum of 17 ½ hours per week and not less than five months in a calendar year.
Q. Do we have any waiting periods to choose from for new firm personnel?
A. Yes, you can make coverage available to the eligible individuals on an immediate basis (starting date) or after completing six months of continuous service. This option is elected when the firm sets up the plan.
Q. If we elect dependents coverage, which dependents are eligible?
A. Eligible dependents in most cases include the spouse and children of individuals who are insured under the Plan. Included are legally adopted children and your step-children who are dependent on you for support and maintenance, provided in the case of the step children, that a biological parent has given written consent for the coverage. Children must be unmarried and less than age 25. The spouse may not be on active duty in the armed forces. Firm personnel covered under the plan cannot also be covered as dependents.
Q. Is there a scheduled amount that the firm must choose from when applying for coverage?
A. Yes, your firm can choose from schedules of coverage with insurance maximums of $500,000, $400,000, $300,000, $200,000, $100,000 or $50,000.
Employee coverage is based on annual earnings. For your firm's coverage basis, a choice of protection from one to three times salary is available depending on the schedule of coverage elected. Proprietors and partners under the age of 65 can be covered for the schedule maximum without regard to earnings.
Q. What happens if a covered individual become disabled?
A. An insured individual under the age of 50 who becomes totally and permanently disabled may receive upon approval, monthly installment payments representing a portion of his or her life insurance to help out during a period of disability. Payment is at the rate of $10 per $1,000 of term life insurance in force and is paid for a period up to 10 years. As payments are made, the face amount of life insurance is reduced accordingly.
Total disability means that due to sickness or injury you are unable to perform any work or engage in any occupation for remuneration or profit or you have lost the sight in both eyes or have lost both hands, both feet or have lost a hand and foot.
If a covered individual becomes totally disabled while covered and before the age of 60, the member's life insurance will be extended at no cost while the member remains totally disabled. As long as the disability remains, and proof of disability is furnished from time to time, the death benefit protection will be extended at no cost from year to year. (This extension will not apply to the accidental death and dismemberment insurance.)
Q. At what age does coverage terminate?
A. Coverage will not terminate due to age as long as a covered individual is actively engaged in work full-time with the contributing employer. However, coverage will reduce depending on age as follows; at age 65 (25% of the amount of insurance in force prior to the age reduction), at age 70 (50%), at age 75 (65%) and at age 80 (75%), including any change in coverage amount due to a change in earnings or status.
These frequently asked questions are for illustrative purposes only and is not a
contract. It is intended to provide a general overview of the certificate described. Please
remember that only the insurance certificate can give actual terms, coverages, amounts, conditions
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