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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