| | | B.__The insurer effects the offset of benefits within 60 | | days of notice to the insurer, or such later date as the | | insurer begins paying benefits to the insured, that the | | insured is receiving or is entitled to receive income that | | may result in a reduction of benefits payable under the | | policy; |
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| | | 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 |
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| | | D.__The insurer provided the insured with clear and | | conspicuous written notice that accurately explains to the | | insured all types of other sources of income that may result | | in a reduction of the benefits payable under the policy | | within 30 days of the date a claim for disability benefits | | was filed. |
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| | | Sec. 2. 24-A MRSA §2829-A, as enacted by PL 2003, c. 321, §2, is | | repealed and the following enacted in its place: |
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| | | §2829-A. Disability benefit offsets |
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| | | 1. Disclosure to persons eligible for coverage. For any policy | | or contract subject to this chapter that provides disability | | income benefits, if the benefits under that policy or contract | | are subject to reduction due to other sources of income, then the | | insurer shall include in any written enrollment material and | | certificate of coverage developed by the insurer that is intended | | to be distributed to persons eligible for coverage under the | | policy or contract a clear and conspicuous notice that accurately | | explains all types of other sources of income that may result in | | a reduction of the benefits payable under the policy or contract. | | The notice requirement under this section does not apply to an | | advertisement intended for the general public. |
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| | | 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 20% of the net benefit per benefit payment period unless: |
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| | | A.__For policies applied for after September 13, 2003, the | | insurer has complied with the requirements of subsection 1; |
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| | | B.__The insurer effects the offset of benefits within 60 days of | | notice to the insurer, or such later date as the insurer begins | | paying benefits to the insured, that the |
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