US Laws, Codes, Statutes & Cases

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 21
                        DISABILITY INSURANCE POLICIES
    41-2123.  RELATION OF EARNINGS TO INSURANCE. (1) There may be a provision
as follows:
    "Relation of Earnings to Insurance: If the total monthly amount of loss of
time benefits promised for the same loss under all valid loss of time coverage
upon the insured, whether payable on a weekly or monthly basis, shall exceed
the monthly earnings of the insured at the time disability commenced or his
average monthly earnings for the period of two years immediately preceding
disability for which claim is made, whichever is the greater, the insurer will
be liable only for such proportionate amount of such benefits under this
policy as the amount of such monthly earnings or such average monthly earnings
of the insured bears to the total amount of monthly benefits for the same loss
under all such coverage upon the insured at the time such disability commences
and for the return of such part of the premiums paid during such two years as
shall exceed the pro rata amount of the premiums for the benefits actually
paid hereunder; but this shall not operate to reduce the total monthly amount
of benefits payable under all such coverage upon the insured below the sum of
$200 or the sum of the monthly benefits specified in such coverages, whichever
is the lesser, nor shall it operate to reduce benefits other than those
payable for loss of time."
    (2)  The foregoing policy provision may be inserted only in a policy which
the insured has the right to continue in force subject to its terms by the
timely payment of premiums (a) until at least age fifty (50), or (b) in the
case of a policy issued after age forty-four (44), for at least five (5) years
from its date of issue. The insurer may, at its option, include in this
provision a definition of "valid loss of time coverage", approved as to form
by the director, which definition shall be limited in subject matter to
coverage provided by governmental agencies or by organizations subject to
regulation by insurance law or by insurance authorities of this or any other
state of the United States or any province of Canada, or to any other coverage
the inclusion of which may be approved by the director or any combination of
such coverages. In the absence of such definition such term shall not include
any coverage provided for such insured pursuant to any compulsory benefit
statute (including any workmen's compensation or employer's liability
statute), or benefits provided by union welfare plans or by employer or
employee benefit organizations.