Legal Question in Insurance Law in Maine

disability insurance lump sum payment

I recieved a lump sum to settle a work comp claim. My long term disability insurer has reduced my monthly benefit by interpiting the policy's provision that ''if the period of time cannot be deterimined we will prorate the lump sum over 60 months'' It seems a no-brainer that the work-comp settlement is intended to replace payments for life and that the time for calculating the offset should be life.

The work-comp act in this case defines a settelment ''as commuting all payments for future benefits to a lump sum''

What recourse do I have to change this interpitation by the insurance co beyond appeal to the companies ''leader''?


Asked on 12/13/07, 10:52 am

2 Answers from Attorneys
Alan Wagner Wagner, McLaughlin & Whittemore P.A.

Re: disability insurance lump sum payment

It is not unusual for work comp payments to reflect a liability for far less than "life." Call your work comp lawyer -- you may be better off with the 60 month period than you would be if you really pushed this issue.

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Answered on 12/14/07, 12:43 pm
David Marchese Drummond & Drummond, LLP

Re: disability insurance lump sum payment

The laws do not always specify that benefits are for life...it depends on the level of whole body impairment and when the injury occurred. I suggest that you first speak with your workers comp advocate at the commission, and see what they can do to assist. Thank you for your inquiry.

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Answered on 12/13/07, 11:16 am


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