Plan Aggregation and Coverage Change Rules Sample Clauses
The "Plan Aggregation and Coverage Change Rules" clause defines how multiple insurance plans are combined and how changes to coverage are managed within a policy. It typically outlines the procedures for coordinating benefits when an individual is covered by more than one plan, such as through dual employment or family coverage, and specifies the process for updating or modifying coverage due to life events like marriage or job changes. This clause ensures that coverage is applied correctly and prevents duplication of benefits, thereby providing clarity and fairness in the administration of insurance policies.
Plan Aggregation and Coverage Change Rules. If this Plan satisfies the requirements of Code §401(k), §401(a)(4), or §410(b) only by being aggregated with one or more other plans of the Sponsoring Employer, or if one or more other plans satisfy the requirements of Code §401(k), §401(a)(4), or §410(b) only by being aggregated with this Plan, then this Section will be applied by determining the ADP of the Employees as if all such plans (including this Plan) were a single plan. If the Prior Year Testing Method is being used and if more than 10% of the Employer’s NHCEs are involved in a plan coverage change as defined in Regulation §1.401(k)-2(c)(4), then any adjustments to the Non-Highly Compensated Employees’ ADP for the prior Plan Year will be made in accordance with such Regulations. Plans may be aggregated in order to satisfy Code §401(k) only if they have the same Plan Year and use the same ADP testing method (the Prior Year Testing Method or the Current Year Testing Method).