Defining coverage limits

This procedure outlines the tasks to define coverage amount limits, the default coverage amount, and coverage reduction amounts.

You can define these:

• Limits on the amount of coverage as either flat maximum or minimum amounts, maximum or minimum multiples (for multiple of salary calculations), or based on coverage in another benefit plan

• Coverage reduction rules based on an employee's age. Coverage may be reduced by a flat amount, or to a percentage of the original coverage amount

• Default coverage amounts for supplemental and multiple of salary plans. Employees will be enrolled with the default coverage amount if no amount is entered on the benefit entry form when enrollment occurs. If benefit update reports automatically enroll employees in the plan, then the employees are enrolled with the default coverage amount.

Before defining coverage limits, you must define the coverage amount in Coverage Amounts (BN17.3). Also, if the plan specifies a reduction at different ages, you must define a coverage reduction table. See Defining Coverage Amounts.