I bought long term disability insurance?
I bought long term disability insurance, I was hurt at work and denied workmans comp. I filed a claim with the short and long term disability. I was approved for state disability, and they paid me back from the time I was hurt. Now the long term disability wants their money back. I also have a law suit against the workers comp insurance. Shouldn’t the long term disability only get their money back if I win the workers comp. case?
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on Thursday, September 2nd, 2010 at 10:14 pm and is filed under Worker Q & A.
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No. Read your policy paperwork. It’s called the right of subrogation.
The policy you bought includes social insurance offsets. This is a very common provision chosen by the policyholder to reduce the monthly premium. With the Social insurance provision your policy benefit is offset by the amount of disability benefits you receive from other social programs like State disability plans or Social Security Disability.
No.
Long term disability gets their money back from any OTHER insurance you might have collected under, for the same time.
Example: You became disabled January 1st. LTD started paying you April 1st. The state started paying you from January 1st, through July 1st. You were double paid, for April through July 1st. You DO owe reimbursement for the double payment.
You cannot “stack” lost income coverage of any time, and be double paid for it. That is double dipping, and illegal. If you win your WC case, part of the settlement for PRIOR lost wages, will go to reimburse the state and the LTD for what THEY paid out.
Your disability insurance through work is offset by other income (state disability) that you would receive. So, if they paid you $1,000 per month and then the state goes back and pays you $1,000 per month retroactively then you owe them the money back. If the state pays you $500 per month then you’d owe half.