List of Defined Terms
Contributory Insurance means that coverage purchased under the Policy is paid for in full or in part by you.
CPI-W means the Consumer Price Index for Urban Wage Earners and Clerical Workers published by the United States Department of Labor. If the CPI-W is discontinued or changed, we may use a comparable index. When required, we will obtain prior state approval of the new index.
Eligibility Waiting Period means the period you must wait before coverage becomes effective under the Policy. (See Section II - Schedule of Insurance.)
Employer means the Policyholder and all subsidiaries named on the Schedule of Insurance.
Evidence of Insurability means you must:
1. complete and sign our health and medical history form(s);
2. sign our form authorizing us to obtain information about your health and medical history;
3. at your expense, undergo a physical examination, if required by us, which may include blood testing; and
4. at your expense, provide any additional information about your insurability that we may reasonably require.
Hospital means a legally operated institution or facility providing full-time medical care and treatment under the direction of a full-time staff of licensed physicians and registered nurses. Nursing homes, rest homes, convalescent homes, homes for the aged, and facilities primarily providing custodial, educational, or rehabilitative care are not Hospitals.
Indexed Earnings means your Earnings adjusted by the rate of increase in the CPI-W. During the first year of Disability, your Indexed Earnings are the same as your Earnings. After that, the Indexed Earnings are determined on each anniversary of your Date of Disability by increasing the previous year's Indexed Earnings by the rate of increase in the CPI-W for the prior calendar year. The maximum adjustment in any year is 10%. Indexed Earnings will not decrease even if the CPI-W decreases.
Injury means an accidental bodily injury requiring treatment by a Physician.
Late Enrollment means you have applied for Contributory coverage 31 days or more after the date you first became an Eligible Person.
LTD Monthly Benefit means the monthly benefit payable under the terms of the Policy.
Maximum Benefit Period means the longest period for which LTD Monthly Benefits are payable for any one period of continuous Disability. The Maximum Benefit Period will begin to accrue when the Elimination Period ends. LTD Monthly Benefits are not payable after the end of the Maximum Benefit Period even if you are still Disabled. (See Section II - Schedule of Insurance.)
Maximum Covered Monthly Earnings means the Maximum LTD Monthly Benefit divided by the LTD Benefit Percentage.
Noncontributory Insurance means coverage purchased under the Policy is paid for in full by the Policyholder.
Pension Plans, Retirement Plans, and Retirement Benefits mean money paid to a fund by the Employer on your behalf that is later received by you at the time of your retirement and
1. is established for the purpose of providing a source of retirement income; and
2. does or does not result in a reduction of the amount of money you would receive when Disabled under the plan at your normal retirement age.
The terms Retirement Plan and Pension Plan include any Retirement Benefit:
1. that is part of any federal, state, county, municipal, or association retirement system; and
2. for which you are eligible as a result of employment with the Employer.
The terms Retirement Plan or Pension Plan do not include:
1. a profit-sharing plan;
2. a thrift plan;
3. an individual retirement account (IRA);
4. a tax-sheltered annuity (TSA);
5. a stock-ownership plan; or
6. a non-qualified plan of deferred compensation.
Regardless of your retirement date when Disabled, you may be receiving Retirement Benefits. Retirement Benefits will be treated as a Benefit Offset on the later of the following:
1. when you attain age 62; or
2. when you attain your normal retirement date.
Retirement Benefits received voluntarily by you when Disabled prior to your normal retirement date will be treated as a Benefit Offset at the time they are received.
The Benefit Offset will not exceed the percentage being contributed to your Retirement or Pension Plan by the Employer immediately prior to the Date of Disability.
Retirement Benefits may be paid in either a lump sum or in periodic payments. Your Benefit Offsets will be adjusted according to the manner in which your Retirement Benefits are paid. (See Benefit Offsets in Section IV - Benefit Provisions.)
Physician means a licensed medical professional, diagnosing and treating you within the scope of the physician's medical license. A Physician does not include:
1. yourself;
2. the Employer;
3. an employee of the Employer; or
4. anyone related to you by blood, marriage, or adoption.
Policy means the group LTD Insurance Policy issued by us to the Policyholder and identified by the policy number.
Policyholder means the entity named on the face page of the Policy.
Prior Plan means the Employer's group long term disability insurance policy in effect on the day before the effective date of the replacement coverage under the Policy.
Reasonable Accommodation means any modification or adjustment to a job, an employment practice, or the work environment that makes it possible for an individual with a Disability to enjoy an equal employment opportunity without causing undue hardship on the Employer.
Sickness means an illness or disease, including pregnancy or complications of pregnancy, requiring treatment by a Physician.
Work Earnings means your earnings from self-employment or earnings from work performed for the Employer or any other employer while Disabled.
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