What converts an individual policy to an ERISA Plan?  Discounted premiums can render the policy a plan under ERISA.

What if the employee reimburses the employer for the premiums?  This is an interest free loan and may be “sufficient employer contribution” to render the policy governed by ERISA.

There are a number of issues that need to be addressed to determine whether an individual policy constitutes an ERISA plan. 

Here’s the case of Boles v. UNUM Life Insurance Co. of America [pdf], __ F.Supp. 2d __, 2012 WL 204297 (D. Neb. January 24, 2012) (Employee reimbursed employer the discounted premiums for the employee’s individual policy.  The Court held the employer was essentially providing an interest free loan to the employee which amounted to “sufficient” employer contribution to render the policy governed by ERISA.)

Please see full article below for more information.