Dec 2, 2005

California Insurance Commissioner Tries to Stop LTD Offsets

An article in the Sacramento Business Journal reports that an association of insurers has sued to block California Insurance Commissioner John Garamendi from implementing a proposal to impose limits on the types of Long Term Disability (LTD) Insurance that could be sold in California. One element of Garamendi's plan is a prohibition on reducing LTD benefits on account of Social Security disability benefits. According to the lawsuit, Garamendi's proposals would increase costs for group LTD by as much as 46% and for individual LTD policies by as much as 33%.

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