May 21, 1999


All UPS Agencies




Ronald S. Mitchell, Director




Colonial Life and American Public Life Insurance Company's Rate Increase

Colonial Life & Accident and American Public Life Insurance Company will be implementing an across the board rate increase effective July 1999 for certain cancer policies. Colonial and American Public will mail letters to all agencies affected by this rate increase, along with a list of the employees' current deduction amount and the increased amount. Letters will also be mailed from the insurance companies to the employees affected, notifying them of this change. Included with the letter will be a new Payroll Deduction Authorization Form (SED4) with the new cancer rates. Employees who accept the increase must sign the forms and bring them to their payroll office by July 1, 1999. Employees who do not turn in the signed form by July 1, 1999, will have their policies canceled upon notice from insurance company, effective July 1999. Agencies should have all deduction changes entered for the July 2, 1999, payday. Agencies can process a one-time deduction for the second payday of July for those forms received between June 28 and July 1.

The insurance companies will use the July deduction information from UPS to determine which employees did not agree to the increase. They will forward a list of these employees to the payroll offices during September advising agencies to stop the deduction and refund premiums from 7/1/99 to present. The list will include the employee name, social security number, amount to be refunded and time period of the refund. A new Payroll Deduction Authorization Form (listing existing products and/or no deduction amount for cancer) will also be mailed to the employee and agency indicating that coverage has been canceled.

If you have any questions about the rate increase, contact the insurance companies' coordinators:

American Public Life Insurance Co.

Sharon Starnes


Colonial Life Insurance Co.

Kristi Kirk

(803) 798-7000 ext.5978

Any other questions should be directed to Karen Antoine at (225) 342-5354.



Ray Harrison, Group Benefits


Kristi Kirk, Colonial Life & Accident


Sharon Starnes, American Public Life


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