Q: I have had long term disability benefits offset by veterans disability benefits unjustly
Received LTD benefits from Liberty Mutual Ins. for 2 years. During that time, I started receiving VA disability benefits. LTD benefits were "offset" by Liberty Mutual to the tune of $62,400. The issue is the vague language used to justify the offset which did not specifically mention veterans disability benefits. I have reviewed several lawsuits (e.g. Bush v. LIBERTY LIFE ASSURANCE COMPANY) and believe that I have a case. What do you think? The language used to justify the offset:
Other Income Benefits and Other Income Earnings
Other Income Benefits means :
1. The amount for which the Covered Person is eligible under:
a. Workers' or Workmen's Compensation Laws;
h. Occupational Disease Law;
c. Title 46, United States Code Section 688 (The Jones Act);
d. any work loss provision inmandatory ''No-Fault" auto insurance;
e. Rai l road Re t i r ement Ac t ;
f. any governmental compulsory benefit act or law; or
g. any other act or law of like intent.
A: Wow, it looks as though you have done your homework! This is one of those areas where I like to shout from the rooftops. My opinion; carriers should not be allowed to sell LTD because when a person qualifies for LTD the carrier has a provision in its policy allowing its' self to take a credit for SS disability, or some other government payment. You need to look to the policy from Liberty Mutual so see if it in fact has a provision allowing it to take a credit. The carrier know when they "sell" a LTD policy that it is merely giving a "loan" because it will recoup its payments. I feel that selling LTD in such circumstances if nothing more than fraud by carrier, unless full disclosure is explained that most likely it will just be a loan. I hope they have not included a "rider" stipulating to the recoupment. Also, please know that it must be specific as to what it can recoup. If it states it can recoup its payment from SS but is silent as to VA benefits....you might have a case. Good luck to you.
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