Question

Sun is 52 years old and worked for the public-school system in her municipality until she was 42 where she was covered under a generous group health insurance plan. She had a severe accident at work and was permanently disabled. She made a long-term disability (LTD) claim to the plan's insurer and was quickly approved. Ten years later, while she is still on claim for LTD, the municipal public-school system changes the insurance company they use for their coverage and Sun's group plan terminates. What will happen to Sun's LTD claim?

a) Sun will continue to receive LTD benefits
b) Sun's LTD benefits will not continue
c) Sun's LTD benefits will continue for 120 days
d) Sun's group LTD claim will be converted into an individual contract with the previous insurance company, so that it becomes portable

Answer 1

Sun's LTD claim will not continue.

Step-by-step explanation:

When Sun's group health insurance plan terminates due to the municipal public-school system changing the insurance company they use for their coverage, Sun's LTD claim will not continue (option b). Since the group plan terminates, Sun's group LTD claim will not be converted into an individual contract with the previous insurance company, nor will the benefits continue for 120 days. Therefore, Sun will no longer receive LTD benefits.