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Life Insurance Plan - General Information

The following pages describe the principal features of your Life Insurance Plan, which provides Basic and Supplemental Life Insurance coverage and AcLcidental Death and Dismemberment benefits.

Who Is Eligible?

Active Employees - All regular employees who work at least 20 hours a week are eligible for Basic and Supplemental Life Insurance coverage effective on the first day of active employment. Eligible part-time employees will be covered according to their part-time annual salaries.

Employees on Leave of Absence - Except as noted below, if you are granted a leave of absence, you may continue your group life insurance coverage for up to one year from the date of your leave, provided that you have made the necessary arrangements for prepaying premiums.

Continuation of insurance is not allowed while on leave for other employment when (1) the other employer offers equivalent coverage or (2) the other employer is an agency or prime contractor of the federal government that will cover the employee under its insurance program.

Outline of Your Group Life Insurance Plan for Employees Under Age 65

Basic Life Insurance - The basic coverage of the Group Life Insurance Plan is provided at no cost to you. Basic Life Insurance is provided in an amount equal to one times your base annual salary rounded to the next $1,000.

Supplemental Life Insurance I and II - In addition to the Basic Life Insurance coverage provided by AUI, two supplemental life insurance plans are also available. Coverage is available in increments of one or two times your annual salary rounded to the next $1,000. The employee premium for the Supplemental Life Insurance will vary based on the age of the insured.

An employee whose base annual salary is $30,001 per year will have total life insurance coverage available as follows:

Maximum Life Insurance Coverage Available to Employees Age 65 And Over

The amount of Basic Life Insurance available to employees age 65 and over will be in accordance with the following schedule:

Supplemental I and Supplemental II coverages will be available in amounts equal to the reduced Basic amount. For example: A 65 year-old employee earning $40,000 per year enrolled in Supplemental I and II would have the following life insurance coverage:

A 70 year-old employee earning the same $40,000 per year enrolled in Supplemental I and II would have the following life insurance coverage:

You may change your Supplemental Life Insurance election at any time. To increase your coverage please contact the Benefits Office for an "Evidence of Insurability" form. This form must be forwarded to Reliance Standard for underwriting. To reduce your coverage please contact the Benefits Office for an enrollment form to indicate your desired level of coverage.

Accidental Death and Dismemberment Plan

Accidental Death and Dismemberment (AD&D) Insurance is provided in addition to your regular life insurance. Basic AD&D insurance, in an amount equal to your Basic insurance, is provided at no cost. Supplemental AD&D insurance is available on an optional enrollment basis at the premium rate of 2.0 cents per month, per $1000 of coverage, for all age brackets. Supplemental AD&D coverage may not exceed the amount of Supplemental life insurance coverage.

This insurance will be paid, regardless of other insurance, for any of the following losses resulting from an accident occurring on or off the job while you are insured:

AD&D insurance does not cover losses occurring more than 90 days after the accident, or any loss resulting from war, suicide, intentionally self-inflicted injury while sane or insane, bacterial infection (except infection resulting from an accidental wound), or losses due to disease.

Living Benefits Option

If you are diagnosed as terminally ill with a 12 month or less life expectancy, you may elect to receive an advance payment of a portion of your life insurance proceeds payable from your Basic and Supplemental life insurance coverages. The maximum payment under each policy is 50% of the death benefit. The remaining benefits are paid to your named beneficiary upon your death

Miscellaneous Life Insurance Information

Naming a Beneficiary - In the event of your death, from any cause, your regular group life insurance benefits will be paid to any beneficiary or beneficiaries you have named. You may name anyone you wish as a beneficiary, and you may change your beneficiary whenever you choose.

Assignment of Your Life Insurance Policies - Instead of naming a beneficiary, you may elect to make an absolute assignment of your group life and AD&D insurance policies to your spouse or another designated person. When you assign your life insurance policy to another person, you divest yourself of all ownership rights or interests including the right to change beneficiaries. In the event of your death, the proceeds from your life insurance policy may be excluded from your taxable estate.

You may obtain additional information and the necessary assignment forms from the Human Resources Office.

If You Become Totally Disabled - As long as you are receiving benefits under the AUI Long Term Disability Plan, your life insurance will be kept in force without cost to you. If death occurs while you are disabled, your life insurance benefits will be paid to your beneficiary.

Converting Your Insurance Upon Termination - If you terminate employment for any reason, your group life insurance coverage will be continued for 31 days.

During this period, you have the privilege of exchanging all or a portion of your group life insurance for an individual life insurance policy. No medical examination will be required, but you must pay the premium for this coverage. You may obtain the necessary application forms from the Human Resources Office.

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