Mercer Select US - California regulators propose repeal of disability benefit offset rule

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California regulators propose repeal of disability benefit offset rule

California insurance regulators have proposed repealing a recently adopted rule (2232.45) that prohibits insurers from offsetting disability benefits by amounts they estimate the beneficiary will receive from state-mandated disability or workers' compensation. The rule was issued under a California insurance law (790.06) that gives the Department of Insurance (DOI) broad powers to interpret and enforce any activity or practice it deems unfair or deceptive. In its statement of reasons, the DOI said the rule is "unnecessary," and after reevaluating the market, will use "case-by-case enforcement actions." A public hearing on the proposed repeal is scheduled for Jan 8, 2009. (Select News, 25 Nov 2008)

California regulators propose repeal of disability benefit offset rule

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