Common use of Change of Coverage Clause in Contracts

Change of Coverage. The amount of Supplementary Life Insurance will be adjusted with changes in the employee’s salary from the date of the approval of the increase or the effective date, whichever is later. If an employee is absent from work because of sickness or disability on the date an increase in insurance would have occurred, the increase will not take effect until the employee returns to work on a full-time basis (i.e. for at least one full day). In the event of a reduction in salary, an employee at his/her option may maintain the insurance coverage at the former higher level.

Change of Coverage. The amount of Supplementary Life Insurance will be adjusted with changes in the employee’s 's salary from the date of the approval of the increase or the effective date, whichever is later. If an employee is absent from work because of sickness or disability on the date an increase in insurance would have occurred, the increase will not take effect until the employee returns to work on a full-time basis (i.e. for at least one full day). In the event of a reduction in salary, an employee at his/her option may maintain the insurance coverage at the former higher level.