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S.F. No. 4352 - Paid Family Leave Income Replacement Benefits by Insurers Authorization
Author: Senator Mark Johnson
Prepared By: Christopher B. Stang, Senate Counsel (651/296-0539)
Date: April 27, 2020


Section 1 authorizes an insurance company licensed to issue disability income insurance policies in this state to offer paid family leave insurance benefits providing wage replacement.

Section 2 provides definitions for purposes of the bill.

Section 3 specifies the reasons for which family leave benefits may be provided for a leave taken by an employee from work.

Section 4 requires the insurance policy to set forth the details and requirements regarding each reason for covered family leave.

Section 5 sets the length of benefits as 52 consecutive calendar weeks. Policy must set forth whether there is an unpaid waiting period, and the terms and conditions for that.

Section 6 requires the policy to set forth the amount of benefits to be paid, as well as the definition of wages and calculation methodology.

Section 7 provides that limitations or exclusions must be set forth in the policy.

Section 8 specifies that subject to permissible limitations, benefits must be paid periodically and promptly.

Section 9 makes the act effective January 1, 2021.

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