What happens if an employer reports the wrong income to the long term disability insurer and my benefit amount is affected?
The amount of your disability benefit is dictated by the terms of an insurance Policy and as such there can be various ways that number is calculated or decided. However, generally your benefit is tied to your income level. Most often it is your employer that is responsible for updating your income information to the disability insurer. The premiums required from the insurer increase along with your increase in salary. If your employer has neglected to update this information and your insurer is using a lower income amount, you have a viable claim in negligence against your employer for the shortfall.
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This searchable database contains information about disability, critical illness and life insurance claims, and what you can do if you are denied or cut
off of your benefits. It is a collection of the most common questions we receive from our clients. General answers have been provided by our lawyers.