California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 2 - Policy Forms and Other Documents
Article 4.5 - Group Disability Income Policies Insuring Employees of California School Districts
Section 2237 - Preamble

Certain group disability income policies providing indemnity for loss-of-time to employees of California school districts contain provisions permitting a reduction in benefit otherwise payable by an amount equal to all or part of the benefits the insured employee receives or is entitled to receive under any other policy of group income insurance. In some cases, an employee of a school district is insured under two, or possibly more, such group disability income policies, each or all of which contain a reduction of benefits provision. Such a situation has caused delays in benefit payment and could conceivably result in the school district employee receiving no benefit payment. This action would constitute an unfair claim settlement practice within the meaning of Insurance Code Section 790.03 (h).

1. New Article 4.5 (Sections 2237-2237.4) filed 3-29-74 as an emergency; effective upon filing (Register 74, No. 13).
2. Certificate of Compliance filed 6-20-74 (Register 74, No. 25).

Note: Authority cited: Sections 790.10 and 10270.94, Insurance Code.