What You Should Be Aware of When Purchasing a Lloyd's of London Disability Insurance Policy
Lloyds of London disability insurance policies are often very restrictive and are different than most disability insurance policies available from just about every other company. When shopping for disability insurance one will discover that there are multiple insurance companies that can offer a variety of different disability insurance policies, and all can contain different definitions, language and coverage terms. Purchasing disability insurance through traditional disability insurance carriers such as, MetLife and Guardian Berkshire Life Insurance Company, who provide own occupation and higher quality disability insurance policies, can be a difficult process for anyone with a pre-existing medical condition, or with some other reason that makes qualifying problematic.
Someone with a pre-existing medical condition will likely not qualify for underwriting, or will be issued a high premium disability insurance policy containing restrictive limitation and exclusion language and riders. Someone who has reached the maximum amount of disability insurance that they could financially qualify for would likely encounter the same problems. Under these scenarios it could be wise to consider purchasing disability insurance through Certain Underwriter’s at Lloyd’s of London.
However, unless one has attempted and failed to obtain disability insurance through a company such as, Northwestern Mutual Life Insurance Company, Guardian Berkshire Life Insurance Company or Metropolitan Life Insurance Company, or another traditional carrier, it would be advisable to contact one of these companies first before attempting to obtain disability insurance through Certain Underwriter’s at Lloyd’s of London.
As a surplus insurer Lloyd’s could underwrite an insurance policy for someone with a pre-existing condition, or underwrite someone who has reached the maximum in disability insurance coverage with their other disability insurance policies. However, the Lloyd’s policy will likely have language limiting the maximum benefit recovery period to approximately 5 years, and contain other limitations and drawbacks that are not found in other disability insurance policies. In addition, one can expect to pay a higher premium for the Lloyd’s disability insurance policy compared to a disability insurance policy from a traditional carrier.
“You only go to Lloyd’s if you have to. It’s really a last resort policy”, says Robert “Bob” Greenberg, CLTC, a disability insurance broker from Florida, with over 37 years of experience brokering own occupation disability insurance for professionals and group disability plans for employers. “My advice is to first look at all your traditional policies and plans first. If you have the maximum amount of insurance, or if because of a pre-existing medical reason you cannot obtain insurance from a traditional policy or plan, you would then go to Lloyds.”
How is Lloyd’s of London Structured?
Most people believe that Lloyd’s of London is an insurance company, when in actuality it is not. Lloyd’s was created in England, in 1774, as a non-incorporated association of subscribing members. It was incorporated by the Lloyd’s Act 1871, and it is currently governed under the Lloyd’s Acts of 1871 through to 1982.
Lloyd’s itself does not underwrite insurance business, its members do. Instead, Lloyd’s operates effectively as a market regulator, setting rules under which members operate an offering centralized administrative services to those members. For most of Lloyd’s existence wealthy individuals backed the policies written with their personal wealth. Since 1994, Lloyd’s has allowed corporations to become members in their market. In its 325 years, Certain Underwriter’s at Lloyd’s of London have issued diverse insurance products, insuring everything from Keith Richard’s fingers and a famous food critic’s taste buds, to policies specifically insuring occupations in the event of disability.
Lloyd’s Status to Sell Insurance in the United States
Since Lloyd’s is a British insurance and reinsurance market, it is not licensed to sell insurance in most U.S. states. Lloyd’s commonly sells insurance through its status as a surplus line insurer. Surplus line coverage is not available from the licensed market. Generally, unless specifically exempted by state law, the risk must be declined by at least 3 licensed or admitted insurers in the local market before it can be placed as surplus lines business at Lloyd’s.
However, there are a few places in the U.S. where Lloyd’s is licensed to sell insurance; Illinois, Kentucky and the U.S. Virgin Islands. Lloyd’s can write the same business in these jurisdictions as other U.S. licensed insurers. Typically, if one was interested in purchasing disability insurance through Lloyd’s they would contact their local broker, who would then contact a surplus lines broker. A lot of Lloyd’s disability policies are sold through Petersen Underwriters in California.
Weigh Other Options Before Purchasing Lloyd’s Disability Insurance
Since Lloyd’s is only admitted to sell insurance in a limited number of jurisdictions in the U.S., the likelihood is that the Lloyd’s policy will be underwritten as a surplus line disability insurance policy, which would contain a limited maximum pay period, as well as limitations and exclusions to coverage. Furthermore, unlike most disability insurance policies which will cover the insured in the event of a change in occupation, the Lloyd’s policy may not. In fact, most Lloyd’s policies require that the insured contact Lloyd’s if there is a change in the insured’s occupation, and charge an additional premium if the new occupation is considered more hazardous than the previous occupation. Disability insurance policies from traditional disability insurance companies do not contain such caveats, and will continue covering the insured without increasing the premiums despite any change in occupation.
We have represented numerous Lloyds of London disability insurance claimants and we are available to assist you in the event that you need to make a claim for benefits under your policy. It is always advisable to have an attorney represent you if you need to pursue a disability claim, as Lloyds uses a third party company to manage a disability claim and they will look for every possible reason to challenge the claim. Contact us for a free consultation.
Resources to Help You Win Disability Benefits
Disability Benefit Denial Options
Submit a Strong Lloyd's of London Appeal Package
We work with you, your doctors, and other experts to submit a very strong Lloyd’s of London appeal.
Sue Lloyd's of London
We have filed thousands of disability denial lawsuits in federal Courts nationwide against Lloyd’s of London.
Protect Your Benefits
Get Your Lloyd's of London Disability Application Approved
We help claimants throughout the entire application process.
Prevent a Lloyd's of London Disability Benefit Denial
We manage every aspect of your disability claim following claim approval.
Negotiate a Lloyd's of London Lump-Sum Settlement
Our goal is to negotiate the highest possible buyout of your long-term disability policy.
Lloyd's of London Reviews
(642)
Policy Holder Rating
5
0%
4
0%
3
0%
2
0%
1
0%
Timely Payments
0.0out of 5
Handling Claim
0.0out of 5
Customer Service
0.0out of 5
Dependable
0.0out of 5
Value
0.0out of 5
Showing 8 of 642 Reviews
Sedgwick
AT&T Was Great and Sedgwick Horrible
My Physician recommended that I take some time from a toxic environment after several deaths in my family coupled with AT&T trying to run tenured employees out of the door... read more >
New York Life
Keeps claiming they will not approve claim for pre existing conditions but my illness is not preexisting
I have been appealing a claim for LTD for 8 months! New York Life keeps claiming they will not approve claim for pre existing conditions but my illness is not preexisting ... read more >
Reliance Standard
Staff Lie
I had my disability cut off the day I was scheduled to find out whether I should have surgery. The claims examiner was aware that I had an appointment on that date and sai... read more >
Reply
Hartford
Former Hartford employee has had life insurance and accidental death policy's revoked for one late premium payment
Dislike how they are constantly interrupting the lives of their disabled EE's whom are entitled to benefit which they paid into out of there pay check every pay period onl... read more >
Reply
Lincoln Financial
Never received benefits my entire leave - or help with them
I used my short term disability insurance for maternity leave and started the process beforehand knowing when I would be out (scheduled induction.) It took a little over a... read more >
Sun Life
Unscrupulous Tactics
Sunlife uses unscrupulous tactics in order to prevent payment of claims. They wait until it is close to the 30 day mark and then they ask for another form of information o... read more >
Sedgwick
Lame
My experience with Sedgwick and personell is as follows: Unhelpful, unprofessional and an overall unpleasant experience.
Unum
Low payments
I was injured at work. I did house keeping in a hospital. I tore just about everything imaginable in my knee. I was let go from my job, because I was no longer able to do ... read more >
Answered Questions by Our Lawyers
(0)
Helpful Videos
(888)
Showing 12 of 888 Videos
Disability Benefit Tips
(330)
Showing 8 of 330 Benefit Tips
What You Should Be Aware of When Purchasing a Lloyd's of London Disability Insurance Policy
Lloyds of London disability insurance policies are often very restrictive and are different than most disability insurance policies available ... Read More >
Disability Benefit Denial Reason #5 – Your Medical Evidence is Weak
If you're seeking long term disability benefits from an insurance company, you may be concern... Read More >
Disability Benefit Denial Reason #4 - Your Doctor Is Misled By the Disability Company
When you're seeking disability benefits under a long term disability policy, your medical rec... Read More >
Disability Benefit Denial Reason #3 - Video & Social Media Surveillance
One thing many long term disability claimants don't know about (or expect) from the claims re... Read More >
How Do You Fight a Long-Term Disability Denial?
Getting a denial letter from your disability insurance company is one of the ultimate insults... Read More >
Disability Denial Reason #2 - Change of Disability Definition & Vocational Review
One of the top reasons for terminating a claimant's long term disability benefits involves th... Read More >
Disability Denial Reason #1 – Paper Review & IME
At Dell Disability Lawyers, we've seen insurance companies give countless reasons to deny lon... Read More >
How to Apply for Reliance Standard Disability Benefits & Top 5 Reasons for a Claim Denial
At Dell & Schaefer we’ve handled hundreds of long term disability insurance claims against Reliance Standard, and have learned a few thi... Read More >
Dell Disability Cases
(375)
Showing 8 of 375 Dell Disability Cases
Seven Surgeries and The Standard Still Denies Long Term Disability Benefits
Our client was employed with the State of Oregon as a Technical Support Representative. She ... Read More >
Sun Life Wrongfully Denies Disability After Paying For 23 Months
We represent a 57 year-old claimant who’s occupation was selling commercial vehicles for ma... Read More >
Nurse Denied Long-term Disability Benefits by Lincoln After the Definition of Disability Changed
Our client, a registered nurse for Dignity Health, found herself in a difficult situation aft... Read More >
Lincoln Reverses Decision to Terminate LTD Benefits of Corporate Attorney after Dell Disability Lawyers Appeals the Decision
The claimant is an 64 year old former Corporate Attorney and at a prominent Florida business ... Read More >
Transportation Manager with Brain Injury Wins Unum Disability Benefit Appeal
Unum unjustly terminated our client’s long term disability claim after it had approved and... Read More >
Prudential reverses decision to terminate LTD benefits of MRI Tech with Primary Progressive Multiple Sclerosis and degenerative Disc Disease
The claimant is a 58-year-old former MRI Technologist for Fairview Health Services who has lo... Read More >
Engineer With Depression Wins Prudential LTD Appeal
The claimant is a former Senior Technology Services Engineer for Accolade, Inc. who was force... Read More >
New York Life Approves Disability Benefits for School Teacher With Multiple Sclerosis
Our client, a former elementary school teacher suffering from Multiple Sclerosis, contacted our office after New York Life terminated her clai... Read More >
Disability Lawsuit Stories
(765)
Reviews from Our Clients
