2. Recovery of disability benefit overpayments.__For claims filed after January 1, 2006, an insurer that is entitled to reduce disability income benefit payments when the insured receives income from other sources and that is entitled to recover overpayments through offsets against current payments to the insured may not recover such overpayments at a rate greater than 10% of the net benefit per benefit payment period unless:

A.__The insurer has complied with the requirements of subsection 1;

B.__The insurer effects the offset of benefits within 60 days of notice to the insurer that the insured is receiving or is entitled to receive income that may result in a reduction of benefits payable under the policy;

C.__The overpayment did not result from the insurer's miscalculation of benefit reductions or the insurer's miscalculation of benefits payable under the policy; and

D.__The insurer provided the insured with written notice of contract provisions permitting benefit reductions within 60 days of the date disability benefits commenced.

SUMMARY

This bill limits the rate at which an insurer's overpayment of disability income benefits may be recovered by the insurer through offsets against current payments to the insured.