If your employer provides group disability coverage and you also purchased additional protection through a professional association then this article is a must read.
In a recent court case, a policyholder filed suit against the disability insurance carrier who provides the group protection their employer for failure to provide the full benefit illustrated in the policy. Why you ask? The insured had also purchased coverage through a professional association and thought it to be individual protection. In the suit the Group Carrier for the employer claimed that the association benefits actually constituted group disability benefits (not individual protection) and for that reason they did not have to pay the full benefit amount offered from the employer contract. The Federal Court agreed with the Group carrier and allowed them to lower the injured individual’s benefits according to contract provisions.
This ground breaking decision will impact any individual looking to supplement any employer provided group protection with association protection such as the AMA, ADA, ABA etc.
I have said it before, there is no substitute for private professional coverage. It might be more expensive than association protection but you cannot afford to be without it. To find out more information or get a second opinion contact us and we will be happy to make sure you have to best protection for your specialty.
