Can an insurance policy be written on me, an hourly worker, by my employer?

Yes, they can.  Typically, in the past employers got what is known as "Key Man Insurance" on its top executives.  However, in recent years in order to obtain certain tax and other financial benefits, companies have started to take out what is known as "Dead Janitor's Insurance" on lower level employees.

However, the government has cracked down on this practice.  Now the company must prove 2 things: (1) it has an" insurable interest" - the employer must demonstrate that if the employee dies the business will suffer some type of significant loss; and (2) the employer must have consent - the employee in question must give their permission to be so insured.

This can all get rather complicated so I have provided a link to an article that explains this more fully: ://moneycentral.msn.com/content/Insurance/P64954.asp