| Features
Important to Employers in Designing a Disability Program |
| |
Very
Important |
Important |
Minimally
Important |
Not At All
Important |
| Short Elimination Period |
15.3% |
53.7% |
26.6% |
4.4% |
| High benefit amount percentage |
18.4% |
68.8% |
11.5% |
1.4% |
| Return-to-work incentive |
34.9% |
49.6% |
14.1% |
1.4% |
| Rehabilitation assistance |
29.7% |
55.6% |
13.6% |
1.1% |
| Long term own-occ benefit |
14.3% |
46.3% |
34.0% |
5.4% |
| Unlimited mental & nervous ben |
2.2% |
28.9% |
49.7% |
19.1% |
Source: HIAA/JHA, Disability Insurance: Opinions of Employers &
Financial Planners, April 2003
|
The spring brings a flurry of new sales and service offerings from group
carriers across the nation. Assurant Employee Benefits introduced a unique
voluntary disability product that is a mix of critical illness, short and
long-term disability products. The Voluntary Serious Disability Benefit is
triggered by a hospital stay and designed to cover those disabilities deemed
"very serious" in nature. Initial qualification for the first 6 months of
benefits requires continuous hospital confinement of 72 hours or more, or being
diagnosed with a terminal condition (12 months or less life expectancy).
Qualification for continued benefits after the first 6 months requires a
condition that results in a 51% whole person impairment rating.
more...
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HIPAA SECURITY RULE GOES INTO EFFECT
The Health Insurance Portability and Accountability Act (HIPAA) outlines certain
security standards in a rule commonly known as the "Security Rule". For most
covered entities (except small health plans), the compliance deadline for the
Security Rule is April 20, 2005. Covered entities include: i.) health care
providers, ii.) health plans, and iii.) health care clearinghouses. While
disability insurance is exempt under HIPAA, many producers and consultants
cover many lines and may encounter questions about the security rule.
more...
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Average Risk
Why is my 50 life case that has never had a claim getting a rate increase?
The concept of average risk is an important one in explaining many underwriting
and rating theories. The average risk for a hypothetical pool of 20, 50-life
cases can be defined as the risk that is expected to produce a loss ratio equal
to the permissible or tolerable loss ratio. Above-average risks in a pool would
be expected to produce an actual loss ratio below the tolerable loss ratio.
Below-average risks will develop actual loss ratios greater than their
tolerable loss ratios.
more...
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