Question
How can Reliance Standard not coordinate with both of my disability insurance policies?
I have two group LTD disability plans in CA. One is paid for through my union health trust (insured Reliance Standard Ins. Co – 66.67% of wages) and I understand all the benefits are taxable. I have a second LTD Plan (Non-profit association plan at 80% of wages) that I pay with after tax dollars so my benefits are tax free. Here is my question. Rel. Standard is telling me the will not coordinate with my 2nd policy and will fully offset or deduct their benefits if I receive any benefits from my Plan 2. How can Rel. Stnd. deny coordination so both plans pay an similar amount not to exceed the maximum of either plan? Isn’t coordination a requirement under the law similar to what we see in dual health plan coordination?
Answer
Jerry, you will need to review your RSL policy to determine what it deems to be a source of “Other Income” subject to offset under its policy. If your second plan falls into an enumerated category RSL could offset what they pay by that amount.
