Common use of Insurance Option Clause in Contracts

Insurance Option. The Employer agrees to implement a plan following the ratification of this agreement which will allow employees to pay for medical insurance, or disability insurance with pre tax dollars. Employee may purchase with their monies medical insurance through the school medical insurance carrier under the following conditions: 1. The right to name the carrier is at the sole discretion of the Employer. 2. All insurance coverage offered is subject to the rules, regulations and policy of the Employers insurance carrier, and subject to acceptance by the Employers carrier of the written application of the employee. 3. Medical plans are restricted to those available from the Employers carrier for individual purchase. It is understood that all employees may have to choose the same plan offered by the carrier instead of making individual choices. 4. The yearly cost of the insurance selected must be deducted via payroll deduction during the normal work year of the employee. The Employer shall incur no financial obligation toward the cost of the insurance. 5. Should the employee be on an unpaid leave of absence, the responsibility for premium payments rests between the individual employee and the insurance carrier. 6. The terms of any policy issued by the Employer’s carrier shall be controlling as to all matters concerning benefits, eligibility, termination of coverage, and other matters and shall not be the subject of any grievance. The Employee must have on file a signed authorization for payroll deduction for insurance. Payroll deduction is then contingent upon sufficient wages owing to cover the deduction. During any pay period that insufficient wages are owing to cover the deduction, payment of an amount equal to the deduction must be made to the Employers Business Office. Non-payment may result in loss of coverage.