Text: SF02151 Text: SF02153 Text: SF02100 - SF02199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 509.3A GROUP DISABILITY POLICIES 1 2 RESTRICTION ON REDUCTION IN BENEFITS. 1 3 1. If the total monthly amount of loss of time benefits 1 4 promised for the same loss under all valid loss of time 1 5 disability insurance coverage upon an insured, whether payable 1 6 on a weekly or monthly basis, exceeds the monthly earnings of 1 7 the insured at the time disability commenced or the insured's 1 8 average monthly earnings for the period of two years 1 9 immediately preceding a disability for which claim is made, 1 10 whichever is the greater, the insurer is liable only for such 1 11 proportionate amount of such benefits under the insurer's 1 12 policy as the amount of such monthly earnings or such average 1 13 monthly earnings of the insured bears to the total amount of 1 14 monthly benefits for the same loss under all such coverage 1 15 upon the insured at the time such disability commences and for 1 16 the return of such part of the premiums paid during such two 1 17 years as shall exceed the pro rata amount of the premiums for 1 18 the benefits actually paid under this section. 1 19 2. This section shall not reduce the total monthly amount 1 20 of benefits payable under all such coverage upon the insured 1 21 below the sum of two hundred dollars or the sum of the monthly 1 22 benefits specified in such coverages, whichever is the lesser, 1 23 nor shall it operate to reduce benefits other than those 1 24 payable for loss of time. 1 25 3. For purposes of this section and with respect to 1 26 benefits paid for total disability as a result of 1 27 quadriplegia, disability benefits paid to a dependent of an 1 28 insured pursuant to the federal Social Security Act, 42 U.S.C. 1 29 } 423 et seq., as a result of such disability shall not be 1 30 considered for determining the total monthly amount of loss of 1 31 time benefits promised for the same loss under all valid loss 1 32 of time coverage or for determining the liability of any 1 33 insurer for benefits to be paid under the insurer's policy. 1 34 This subsection also applies as follows: 1 35 a. In determining the total monthly amount of loss of time 2 1 benefits under section 514A.3, subsection 2, paragraph "f". 2 2 b. In determining primary and family social security under 2 3 section 70A.20. 2 4 EXPLANATION 2 5 This bill provides that if the total monthly benefit amount 2 6 under all group disability coverage of an insured exceeds the 2 7 monthly earnings of the insured at the time disability 2 8 commenced or the insured's average monthly earnings for the 2 9 period of two years immediately preceding a disability for 2 10 which claim is made, whichever is the greater, the insurer is 2 11 liable only for a proportionate amount of the benefits under 2 12 the insurer's policy as compared to the total benefits under 2 13 all coverage. 2 14 The bill provides that the reduction in total monthly 2 15 benefits shall not be below $200 or the total of all 2 16 coverages, whichever is less. The bill provides that with 2 17 respect to benefits paid for total disability as a result of 2 18 quadriplegia, disability benefits paid to a dependent of an 2 19 insured pursuant to the federal Social Security Act, 42 U.S.C. 2 20 } 423 et seq., as a result of such disability shall not be 2 21 considered for determining the total monthly amount of 2 22 benefits promised for the same loss under all valid coverage 2 23 or for determining the liability of any insurer for benefits 2 24 to be paid under the insurer's policy. The bill provides that 2 25 the provision relating to quadriplegia also applies in 2 26 determining the total monthly amount of loss of time benefits 2 27 under Code section 514A.3, subsection 2, paragraph "f" 2 28 (accident and health insurance); and in determining primary 2 29 and family social security under Code section 70A.20 (state 2 30 employees disability insurance program). 2 31 LSB 3681SS 77 2 32 mj/cf/24
Text: SF02151 Text: SF02153 Text: SF02100 - SF02199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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