Life Insurance Employee Notification Act

Life Insurance Employee Notification Act - Requires an employer to notify an employee in writing upon the purchase of an employer-owned insurance policy on the life of such employee for a beneficiary other than the individual who is the subject of the policy.

Declares that violation of this Act constitutes an unfair method of competition and an unfair or deceptive act or practice under the Federal Trade Commission Act.

[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 130 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 130

To prevent the nondisclosure of employer-owned life insurance coverage 
   of employees as an unfair and deceptive Act or practice under the 
         Federal Trade Commission Act, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 5, 2011

   Mr. Gene 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 prevent the nondisclosure of employer-owned life insurance coverage 
   of employees as an unfair and deceptive Act or 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.
    (b) Transition.--
            (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)). The Federal Trade Commission shall enforce this Act in the 
same manner, by the same means, and with the same jurisdiction as 
though all applicable terms and provisions of the Federal Trade 
Commission Act were incorporated into and made a part of this Act.
    (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).
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