Idaho Administrative Code
Title IDAPA 18 - Insurance, Department of
Rule 18.04.08 - INDIVIDUAL AND GROUP SUPPLEMENTARY DISABILITY INSURANCE MINIMUM STANDARDS RULE
Section 18.04.08.036 - DISABILITY INCOME PROTECTION COVERAGE

Universal Citation: ID Admin Code 18.04.08.036

Current through August 31, 2023

01. Minimum Standards for Benefits. The following minimum standards apply to disability income protection coverage: (3-31-22)

a. Provides that periodic payments that are payable at ages after sixty-two (62) and reduced solely on the basis of age are at least fifty percent (50%) of amounts payable immediately prior to sixty-two (62); (3-31-22)

b. Contains an elimination period no greater than: (3-31-22)
i. Ninety (90) days in the case of a coverage providing a benefit of one year (1) or less; (3-31-22)

ii. One hundred and eighty (180) days in the case of coverage providing a benefit of more than one (1) year but not greater than two (2) years; or (3-31-22)

iii. Three hundred sixty-five (365) days in all other cases during the continuance of disability resulting from sickness or injury; (3-31-22)

c. Has a maximum period of time for which it is payable during disability of at least six (6) months. No reduction in benefits is put into effect because of an increase in Social Security or similar benefits during a benefit period. (3-31-22)

02. Banned Policy Provisions. (3-31-22)

a. Where a policy provides total disability benefits and partial disability benefits, only one (1) elimination period may be applied. (3-31-22)

b. A disability income policy may contain a "return of premium" or "cash value benefit" so long as the return of premium or cash value benefit is not reduced by an amount greater than the aggregate of claims paid under the policy, and the insurer demonstrates that the reserve basis for the policies is adequate. (3-31-22)

c. Disability income benefits will not require the loss to commence less than thirty (30) days after the date of accident, nor will any policy that the insurer cancels or refuses to renew require that it be in force at the time disability commences if the accident occurred while the coverage was in force. (3-31-22)

d. No reduction in benefits will be put into effect because of an increase in Social Security or similar benefits during a benefit period. (3-31-22)

e. No policy or certificate may use activities of daily living to define partial or total disability. (3-31-22)

03. Disclosure Provisions. All disability income protection policies will display prominently on the first page of the policy, in either contrasting color or in boldface type at least equal to the size type used for headings or captions of sections in the policy the following: "Notice to Buyer: This is a disability income protection policy." (3-31-22)

Disclaimer: These regulations may not be the most recent version. Idaho may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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