CT SB00032

Prohibits offset provisions in group and individual disability income protection insurance policies from reducing benefits based on retirement income received by the insured, effective January 1, 2012.

Requires insurers offering long-term disability policies with offsets to disclose in a separate document using 14-point bold type: the presence of an offset, how it limits payments, applicable benefit categories, income percentage covered, maximum dollar limits, and at least one operational example.

Defines "offset proviso" as any policy provision allowing insurers to reduce liability for disability claims based on cost-of-living increases in other disability benefits occurring after a claim commences.

Amends Section 38a-519 of the general statutes and creates a new section establishing identical offset disclosure and retirement benefit protections for individual disability income protection policies.

Requires policyholders to provide the required offset disclosures to eligible individuals, with notices directing those seeking offset-free coverage to contact insurance agents or companies.