ELIGIBILITY:  Regular full-time associates, and part-time associates with over 5 years of service and 1000 hours worked the previous year.

EFFECTIVE DATE:  The first of the month following thirty-one (31) days of employment for full-time associates, and the first of the month following eligibility for part-time associates.

COST:  Premiums are 100% paid by the company for the basic insurance.  The associate pays for optional insurance plans.

BENEFIT:  The Company provides life insurance that is one and one-half (1.5) times your annual gross salary (rounded to the next thousand) to a limit of $300,000.

SUPPLEMENTAL LIFE insurance is also available for associates to purchase.  Additional amounts of insurance are at one (1), two (2), or three (3) times income to a limit (including U.S. Oil's portion) of $500,000.  This option is paid through payroll deduction.  The cost is based on the associate's age and amount selected.

VOLUNTARY DEPENDENT LIFE insurance is also available to associates.  It provides $10,000 of life insurance for spouses, and $5,000 of coverage for all eligible dependents.  The associate's cost for dependent life can be seen on the pipeline, or U.S. Oil’s web page.

If an associate or dependent refuses any life insurance coverage at the time of eligibility, and subsequently applies for the coverage, the insurance company will require Evidence of Insurability to be completed at the associate's expense.  The insurance company may also refuse coverage.

TERMINATION:  All life insurance plans terminate on the last day of employment.  Life insurance cannot be maintained after termination or retirement.  It may be converted to an individual plan.  For further information, please see the policy book.  Supplemental life insurance and dependent life insurance coverage are in effect until the end of the month of termination.

IMPUTED INCOME:  Under current tax law, the value of your associate life insurance coverage over $50,000 is considered taxable income when paid by U.S. Oil.  This means the cost of the life insurance over $50,000 will be considered part of your annual compensation for federal income tax, state tax and social security tax purposes.  The cost of life insurance coverage over $50,000 is called imputed income.  The amount you will be taxed on is according to special age-based rates set by the IRS.  This amount is shown on your W-2 form and one of your December pay stubs.

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