Illegal Activity

I'm wondering how many of you out there have wording in your insurance plan that addresses becoming ill or injured while engaged in illegal activity.

For example, our states that participants who become ill or injured as a result of engagement in illegal activity will not have their illness/injury paid.

I have an EE whose son was in an automobile accident several months ago. The accident occurred after he left a party during which he had been drinking. He admitted as much at the hospital and was charged with OWI. She has been very upset at the company for the last several months because the insurance company has held payment of any claims pending the outcome of the criminal proceedings and has been told by her attorney that they have never heard of such a thing and that it may be illegal.


Comments

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  • [font size="1" color="#FF0000"]LAST EDITED ON 03-31-08 AT 06:34AM (CST)[/font][br][br]I couldn't find anything in our C of C about illegal activity. I did find the Subrogation provision which could be applied in this instance.
  • That is the same way our policy is written. We found out after the fact as well. Had an employee involved in an auto accident and our insurance would not pay becasue his blood alcohol was high enough for him to be considered under the influence. He was ticketed for DUI. Luckly... he was the only one in the auto and he ran off the road and overturned his vehicle. Medical bills came in right at $30,000.

  • Our health policy is underwritten by a major national-level company (well known) and has two exclusions that relate:

    "any health care service to diagnose or treat a condition which, directly or indirectly, resulted from or in connection with:
    . . .
    b) participation in or commission of any act punishable by law as a misdemeanor or felony, or which constitutes a riot or rebellion;
    c) engaging in an illegal occupation;
    . . ."

    We're in Florida, and I'm curious about how your attorney thinks the exclusion might be illegal if its a restriction in benefits, does not have an impact on enrollment to the plan, and the criteria for the exclusion are not a protected characteristic.

    thanks,

  • It is not OUR attorney that is claiming this is illegal, it is hers. I do not believe it is illegal and 100% of all the other insurance policies I have worked with have an exclusion of this type but was looking for verification.

    Thanks

    As a result of this issue this EE has become a problem EE with her attitude. She is very angry at the company and feels that after 25+ years of service we owe her son coverage for this accident and that is what she pays insurance premiums for.

  • From what I understand, it is not illegal, it is just a plan provision. Our plan does not have such a provision, but I wish it did!
  • Thanks for the clarification on whose attorney belongs to whom. I can imagine that your worker probably does have an attitude issue at this point. Since the issue is financial and emotional, with the costs being for her son and all, she's more than ripe for an attorney to plant some seeds of bitterness.

    Not sure whether you are self insured or underwritten, but I hope you're underwritten. We've had a few touchy issues with out policies, and fortunately, I get to direct workers to the insurance company's grievance process. I did have to tell one of our workers a couple of months ago, who was asking that I have an insurance company denial of benefits waived, that I refused to commit insurance fraud for her or anyone else. I only used used the fraud terminology as a last resort when I was very tired of her screaming at me on the phone. She said that I could probably afford to pay mine if the situation were me. I took her remark as a blow below the belt, told her it was an unfair comment on her part to make about me or anyone else in my role, and suggested that she was trying to get me to violate the law. She calmed very quickly and has left me alone since about the denial. You probably wish your's were that easy. However, if you are underwritten, you could at least point the opposing attorney to the insurance company since the benefits exclusion is really a function of your insurance company. I'm guessing, however, since you have had your company's attorney involved already that you are self insured.(?)
  • Yes, we are self-insured although our TPA makes all the day-to-day decisions regarding coverage.

    The EE is of the mistaken belief that since she has worked here for the number of years she has that she is owed an exception to the policy and cannot fathom why we will not make an exception for her.

    I find it more and more difficult to maintain my "HR face" when talking to her and just want to tell her that she is angry at the wrong person and maybe she needs to deal with the issues with her son first.
  • You know, you may have to adopt a firm HR face for a moment with this worker by suggesting to her that she has exhausted the remedies available to her through her group insurance and anything left for her to address is at the personal level--which is the level where HR functions begin to bow out. I think I would.

    best wishes
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