Legal Question in Insurance Law in Arkansas

Conversion of Group Life Insurance

I currently work in a life and Disability department for a large corporation. We allow our employees to convert their term life to whole life when they terminate providing they call us within 31 days of that said date. We will allow them to convert the policy up to 90 days after that term date if they did not receive the proper notification from their Personnel Manager when they left the company. Our policy states that the conversion period is then extended. In the past if an employee dies within that 90 days and was not notified of their conversion rights we have paid the death claims. We now have a new manager with a new interpretatin of the law that does not believe that we need to pay these claims, even though we are still allowing the 90 day conversion providing the employee is still living. Is this the correct way to handle this? It seems if we are admitting liability in one respect, that they were not notified so therefore we must let them convert, that it is deceptive to not also pay the death claims on those employees who were no notified, since technically we are till responsible.

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