How long can an employee remain covered by STD, LTD or Group Life in the event they are subjected to temporary reduction in hours, or sent home as a result of a temporary layoff, furlough or facility closure?

For policies without a continuation of coverage provision, including standard disability policies, Reliance Standard will allow an employee to maintain insurance coverage for 60 consecutive calendar days if an employer temporarily

• Reduces an employee’s hours; or,
• Sends the employee home as part of a lay-off, furlough or facility closure.

For policies with a continuation of coverage provision, including standard life policies, Reliance Standard will follow the applicable contract provision. In instances where the provision allows coverage to continue for less than 60 consecutive calendar days, they will administratively extend the timeframe to 60 consecutive calendar days.

In all instances:

• The employer must maintain the employee’s same employment status and continue all premium payments.
• The 60 calendar days will be counted from the effective date of the change.
• On the 61st consecutive calendar day from the effective date of the change, Reliance Standard will consider the change permanent if the employee’s hours continue to be reduced, or the employee continues to be part of a layoff or furlough, or the facility does not reopen. The employee will then need to meet the requirements in the applicable policy to maintain coverage.

As the pandemic situation develops, Reliance Standard will evaluate the 60 calendar day time frame to determine if modification is warranted.

Helpful Resources

Reliance Standard Coronavirus Response page, with links to general FAQs and Dental and Vision FAQs.