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  1 CIGNA Long-Term Disability L TD SAMPLE CONTRACT
  3 FORWARD Group Insurance Life Accident Disability CIGNA Group Insurance focuses on reducing the impact of disability on both employers and employees. We do this by: lowering overall costs, enhancing productivity and being easy to work with, and by ensuring claimants are treated fairly, compassionately and consistently Our contract is a critical means of ensuring these things happen. Designed to work hand-in-hand with our claims management approach, it provides strong support and incentives to help claimants return to health and to work. This is a sample Long-Term Disability Contract and does not constitute a legal document. The provisions here in are not intended to be representative of the benefits you may have purchased. CIGNA Group Insurance products and services are provided by underwriting subsidiaries of CIGNA Corporation, including Life Insurance Company of North America, CIGNA Life Insurance Company of New York and Connecticut General Life Insurance Company. "CIGNA" and "CIGNA Group Insurance" are registered service marks and are used to refer to these subsidiaries. CIGNA Group Insurance Long Term Disability Contract OOII 5/03
  4 CIGNA Long-Term Disability Sample Contract
  5 TABLE OF CONTENTS Group Insurance Life Accident Disability SCHEDULE OF BENEFITS ELIGIBILITY FOR INSURANCE EFFECTIVE DATE OF INSURANCE TERMINATION OF INSURANCE CONTINUATION OF INSURANCE TAKEOVER PROVISION DESCRIPTION OF BENEFITS LIMITATIONS EXCLUSIONS ADDITIONAL BENEFITS TERMINATION OF DISABILITY BENEFITS CLAIM PROVISIONS ADMINISTRATIVE PROVISIONS GENERAL PROVISIONS DEFINITIONS CIGNA Group Insurance Long Term Disability Contract OOII 5/03 1
  6 CIGNA Long-Term SCHEDULE Disability Sample OF Contract BENEFITS Long Term Disability Note: Text within [brackets] indicates an option or variable. In order to be considered disabled the insured must satisfy both the material duties and earnings test. Loss of just one material duty will satisfy the duties portion of the definition. Standard definition excludes bonus, commission, overtime and extra compensation. Other options are available. Policy Effective Date Policy Number Classes of Eligible Employees Eligibility Waiting Period Definition of Disability Definition of Covered Earnings [Month/Year] [Sample Contract] All active, full-time salaried Employees of the Employer regularly working a minimum of [30] Hours per Week. For Employees hired on or before the Policy Effective Date: No Waiting Period For Employees hired after the Policy Effective Date: The first of the month following the date of hire. The Employee is considered Disabled if, solely because of Injury or Sickness, he or she is: 1. unable to perform the material duties of his or her Regular Occupation; [and] 2. unable to earn [60%] or more of his or her Indexed Earnings from working in his or her Regular Occupation. After Disability Benefits have been payable for [24 months], the Employee is considered Disabled if, solely due to Injury or Sickness, he or she is: 1. unable to perform the material duties of any occupation for which he or she is, or may reasonably become, qualified based on education, training or experience; [and] 2. unable to earn [60%] or more of his or her Indexed Earnings. Covered Earnings means an Employee's wage or salary as reported by the Employer for work performed for the Employer as in effect just prior to the date Disability begins. Covered Earnings are determined initially on the date an Employee applies for coverage. A change in the amount of Covered Earnings is effective on the date of the change, if the Employer gives us written notice of the change and the required premium is paid. It does not include amounts received as bonus, commissions, overtime pay or other extra compensation. Any increase in an Employee's Covered Earnings will not affect the disability coverage during the Employee s period of continuous Disability. CIGNA Group Insurance Long Term Disability Contract OOII 5/03 2
  7 Group Insurance Life Accident Disability Total Disability is not required to satisfy the Elimination Period. Other benefit plans are available. This can either be a flat amount or a percentage. Other Maximum Benefit Periods available. 3 months is standard. A 6-month option is available. Elimination Period Gross Disability Benefits Maximum Benefit Minimum Benefit Maximum Benefit Period Age When Disability Begins Age 62 or under Age 63 Age 64 Age 65 Age 66 Age 67 Age 68 Age 69 or older Survivor Benefit [6] months The lesser of [60%] of an Employee's monthly Covered Earnings rounded to the nearest dollar or the Maximum Disability Benefit. [$4,000] per month [$100] per month Maximum Benefit Period The Employee's 65th birthday or the date the 42nd Monthly Benefit is payable, if later. The date the 36th Monthly Benefit is payable. The date the 30th Monthly Benefit is payable. The date the 24th Monthly Benefit is payable. The date the 21st Monthly Benefit is payable. The date the 18th Monthly Benefit is payable. The date the 15th Monthly Benefit is payable. The date the 12th Monthly Benefit is payable. Amount of Benefit: An amount equal to the last Disability Benefit payable for a full month plus the amount of any Disability Earnings by which the benefit had been reduced for that month. Maximum Benefit Period: A single lump sum payment equal to [3] monthly Survivor Benefits. CIGNA Group Insurance Long Term Disability Contract OOII 5/03 3
  9 CIGNA Long-Term Disability Sample Contract Group Insurance Life Accident Disability ELIGIBILITY FOR INSURANCE An Employee in one of the Classes of Eligible Employees shown in the Schedule of Benefits is eligible to be insured on the Policy Effective Date, or the day after he or she completes the Eligibility Waiting Period, if later. The Eligibility Waiting Period is the period of time the Employee must be in Active Service to be eligible for coverage. It will be extended by the number of days the Employee is not in Active Service. Except as noted in the Reinstatement Provision, if an Employee terminates coverage and later wishes to reapply, or if a former Employee is rehired, a new Eligibility Waiting Period must be satisfied. An Employee is not required to satisfy a new Eligibility Waiting Period if insurance ends because he or she is no longer in a Class of Eligible Employees, but continues to be employed and within one year becomes a member of an eligible class. EFFECTIVE DATE OF INSURANCE An Employee will be insured on the date he or she becomes eligible, if the Employee is not required to contribute to the cost of this insurance. An Employee who is required to contribute to the cost of this insurance may elect to be insured only by authorizing payroll deduction in a form approved by the Employer and the Insurance Company. The effective date of this insurance depends on the date coverage is elected. Insurance for an Employee who applies for coverage within 31 days after he or she becomes eligible or within 31 days after a Life Status Change, is effective on the latest of the following dates: 1. the Policy Effective Date; 2. the date payroll deduction is authorized; 3. the date the Employer or Insurance Company receives the completed enrollment form. If an Employee's enrollment form is received more than 31 days after he or she is eligible for this insurance, the Insurability Requirement must be satisfied before this insurance is effective. If approved, this insurance is effective on the date the Insurance Company agrees in writing to insure the Employee. If an Employee is not in Active Service on the date insurance would otherwise be effective, it will be effective on the date he or she returns to any occupation for the Employer on a Full-time basis. CIGNA Group Insurance Long Term Disability Contract OOII 5/03 5
  10 CIGNA Long-Term Disability Sample Contract TERMINATION OF INSURANCE An Employee's coverage will end on the earliest of the following dates: 1. the date the Employee is eligible for coverage under a plan intended to replace this coverage; 2. the date the Policy is terminated; 3. the date the Employee is no longer in an eligible class; 4. the day after the end of the period for which premiums are paid; 5. the date the Employee is no longer in Active Service; 6. the date benefits end for failure to comply with the terms and conditions of the Policy. Disability Benefits will continue for an Employee receiving Disability Benefits when the Policy terminates, if he or she remains disabled and meets the requirements of the Policy. Any later period of Disability, regardless of cause, that begins when the Employee is eligible under another group disability coverage provided by any employer, will not be covered. CONTINUATION OF INSURANCE Allows for coverage to be continued up to 12 weeks for an employee who is expected to return from their employer-approved leave of absence. This Continuation of Insurance provision modifies the Termination of Insurance provision to allow insurance to continue under certain circumstances if the Insured Employee is no longer in Active Service. Insurance that is continued under this provision is subject to all other terms of the Termination of Insurance provisions. Disability Insurance continues if an Employee s Active Service ends due to a Disability for which benefits under the Policy are or may become payable. Premiums for the Employee will be waived while Disability Benefits are payable. If the Employee does not return to Active Service, this insurance ends when the Disability ends or when benefits are no longer payable, whichever occurs first. [If an Employee s Active Service ends due to { personal or family medical leave approved timely by the Employer,} insurance will continue for an Employee for up to {twelve weeks}, if the required premium is paid when due.] CIGNA Group Insurance Long Term Disability Contract OOII 5/03 6
  11 Group Insurance Life Accident Disability [If an Employee s Active Service ends due to {any other leave of absence approved in writing by the Employer prior to the date the Employee ceases work} insurance will continue for an Employee for up to {30 days; the first of the month following the start of the leave of absence; twelve weeks,} if the required premium is paid. An approved leave of absence does not include layoff or termination of employment.] If an Employee s Active Service ends due to any other excused short term absence from work that is reported to the Employer timely in accordance with the Employer s reporting requirements for such short term absence, insurance for an Employee will continue until the earlier of: a. the date the Employee s employment relationship with the Employer terminates; b. the date premiums are not paid when due; c. the end of the 30-day period that begins with the first day of such excused absence; d. the end of the period for which such short term absence is excused by the employer. Notwithstanding any other provision of this policy, if an Employee s Active Service ends due to [layoff, termination of employment, or any other termination of the employment relationship,] insurance will terminate and Continuation of Insurance under this provision will not apply. If an Employee s insurance is continued pursuant to this Continuation of Insurance provision, and he or she becomes Disabled during such period of continuation, Disability Benefits will not begin until the later of the date the Benefit Waiting Period is satisfied or the date he or she is scheduled to return to Active Service. Employees will not ordinarily lose coverage due to change in carriers. TAKEOVER PROVISION This provision applies only to Employees eligible under this Policy who were covered for long term disability coverage on the day prior to the effective date of this Policy under the Prior Plan provided by the Policyholder or by an entity that has been acquired by the Policyholder. A. This section A applies to Employees who are not in Active Service on the day prior to the effective date of this Policy due to a reason for which the Prior Plan and this Policy both provide for continuation of insurance. If required premium is paid when due, the Insurance Company will insure an Employee to which this section applies against a disability that occurs after the effective date of this Policy for the affected employee group This coverage will be provided until the earlier of the date: (a) the employee returns to Active Service, (b) continuation of insurance under the Prior Plan would end but for termination of that plan; or (c) the date continuation of insurance under this Policy would end if computed from the first day the employee was not in Active Service. The Policy will provide this coverage as follows: 1. If benefits for a disability are covered under the Prior Plan, no benefits are payable under this Plan. CIGNA Group Insurance Long Term Disability Contract OOII 5/03 7
  12 CIGNA Long-Term Disability Sample Contract 2. If the disability is not a covered disability under the Prior Plan solely because the plan terminated, benefits payable under this Policy for that disability will be the lesser of: (a) the disability benefits that would have been payable under the Prior Plan; and (b) those provided by this Policy. Credit will be given for partial completion under the Prior Plan of elimination periods and partial satisfaction of pre-existing condition limitations. B. The Elimination Period under this Policy will be waived for a Disability which begins while the Employee is insured under this Policy if all of the following conditions are met: 1. the Disability results from the same or related causes as a Disability for which monthly benefits were payable under the Prior Plan; 2. benefits are not payable for the Disability under the Prior Plan solely because it is not in effect; 3. an elimination period would not apply to the Disability if the Prior Plan had not ended; 4. the Disability begins within six months of the Employee s return to Active Service and the Employee s insurance under this Policy is continuous from this Policy s Effective Date. C. Except for any amount of benefit in excess of a Prior Plan's benefits, the Pre-existing Condition Limitation will not apply to an Employee covered under a Prior Plan who satisfied the pre-existing condition limitation, if any, under that plan. If an Employee, covered under a Prior Plan, did not fully satisfy the pre-existing condition limitation of that plan, credit will be given for any time that was satisfied. [Benefits will be determined based on the lesser of: (1) the amount of the gross disability benefit under the Prior Plan and any applicable maximums; and (2) those provided by this Policy.] If benefits are payable under the Prior Plan for the Disability, no benefits are payable under this Policy. CIGNA Group Insurance Long Term Disability Contract OOII 5/03 8
  13 Group Insurance Life Accident Disability DESCRIPTION OF BENEFITS Disability Benefits The Insurance Company will pay Disability Benefits if an Employee becomes Disabled while covered under this Policy. The Employee must satisfy the Elimination Period, be under the Appropriate Care of a Physician, and meet all the other terms and conditions of the Policy. He or she must provide the Insurance Company, at his or her own expense, satisfactory proof of Disability before benefits will be paid. The Disability Benefit is shown in the Schedule of Benefits. The Insurance Company will require continued proof of the Employee s Disability for benefits to continue. Employees' attempts to return to work are not restricted during the elimination period (benefit waiting period). When determining if the employee is disabled, CIGNA looks at medical evidence, material duties, and overall earnings loss across the entire period. Elimination Period The Elimination Period is the period of time an Employee must be continuously Disabled before Disability Benefits are payable. The Elimination Period is shown in the Schedule of Benefits. A period of Disability is not continuous if separate periods of Disability result from unrelated causes. Disability Benefit Calculation The Disability Benefit payable to the Employee is figured using the Gross Disability Benefit, Other Income Benefits, calculation of Optimum Ability and the Return to Work Incentive. Monthly Benefits are based on a 30-day month. The Disability Benefit will be prorated if payable for any period less than a month. During any month the Employee has no Disability Earnings, the monthly benefit payable is the Gross Disability Benefit less Other Income Benefits, and less the calculation for Optimum Ability. During any month the Employee has Disability Earnings, benefits are determined under the Return to Work Incentive. Benefits will not be less than the minimum benefit shown in the Schedule of Benefits except as provided under the section Minimum Benefit. CIGNA Group Insurance Long Term Disability Contract OOII 5/03 9
  14 CIGNA Long-Term Disability Sample Contract Employees who are disabled and working may receive up to 100% of predisability earnings for the first 24 months. Return to Work Incentive During any month the Employee has Disability Earnings, his or her benefits will be calculated as follows: The Employee s monthly benefit payable will be calculated as follows during the first 24 months disability benefits are payable and the Employee has Disability Earnings: 1. add the Employee s Gross Disability Benefit and Disability Earnings; 2. compare the sum from 1. to the Employee s Indexed Earnings; 3. if the sum from 1. Exceeds 100% of the Employee s Indexed Earnings, then subtract the Indexed Earnings from the sum in 1; 4. the Employee s Gross Disability Benefit will be reduced by the difference from 3., as well as by Other Income Benefits and the calculation for Optimum Ability; 5. if the sum from 1. Does not exceed 100% of the Employee s Indexed Earnings, the Employee s Gross Disability Benefit will be reduced by the Other Income Benefits and the calculation for Optimum Ability. After disability benefits are payable for 24 months, the monthly benefit payable is the Gross Disability Benefit reduced by Other Income Benefits, the calculation for Optimum Ability and 50% of Disability Earnings. Calculation for Optimum Ability The calculation for Optimum Ability is the earnings the Employee could earn if working at Optimum Ability, minus Disability Earnings. When an Employee has the ability to work or return to work, they are expected to fully utilize their capabilities. Definition of Optimum Ability 1. for the first 24 months that benefits are payable, the greatest extent of work the Employee is able to do in his or her Regular Occupation; 2. after 24 months, the greatest extent of work the Employee is able to do in any occupation based on education, training or experience. The Employee s ability to work is based on the following: 1. medical evidence submitted by the Employee; 2. consultation with the Employee s Physician; and 3. evaluation of the Employee s ability to work by at least one but not more than three Independent Experts if required by the Insurance Company. There is no cost to the Employee for evaluation by an independent expert when required by the Insurance Company to determine Optimum Ability. CIGNA Group Insurance Long Term Disability Contract OOII 5/03 10
  15 Group Insurance Life Accident Disability The Independent Expert must be: 1. licensed, registered or certified as required by the laws of the state in which the evaluation is made; and 2. acting within the scope of that license, registration or certificate. Minimum Benefit The Insurance Company will pay the Minimum Benefit shown in the Schedule of Benefits despite any reductions made for Other Income Benefits. The Minimum Benefit will not apply if benefits are being withheld to recover an overpayment of benefits. Other Income Benefits are offsets that are deducted from the gross disability benefit. Other Income Benefits An Employee for whom Disability Benefits are payable under this Policy may be eligible for benefits from Other Income Benefits. If so, the Insurance Company may reduce the Disability Benefits by the amount of such Other Income Benefits. Other Income Benefits include: 1. any amounts received (or assumed to be received*) by the Employee or his or her dependents under: the Canada and Quebec Pension Plans; the Railroad Retirement Act; any local, state, provincial or federal government disability or retirement plan or law payable for Injury or Sickness provided as a result of employment with the Employer; any sick leave or salary continuation plan of the Employer; any work loss provision in mandatory "No-Fault" auto insurance; any workers' compensation, occupational disease, unemployment compensation law or similar state or federal law payable for Injury or Sickness arising out of work with the Employer, including all permanent and temporary disability benefits. This includes any damages, compromises or settlement paid in place of such benefits, whether or not liability is admitted; 2. any Social Security disability or retirement benefits the Employee or any third party receives (or is assumed to receive*) on his or her own behalf ; or which his or her dependents receive (or are assumed to receive*) because of his or her entitlement to such benefits; 3. any Retirement Plan benefits funded by the Employer. "Retirement Plan" means any defined benefit or defined contribution plan sponsored or funded by the Employer. It does not include an individual deferred compensation agreement; early retirement benefits which the employee does not voluntarily choose to receive; a profit sharing or any other retirement or savings plan maintained in addition to a defined benefit or other defined contribution pension plan, or any employee savings plan including a thrift, stock option or stock bonus plan, individual retirement account or 40l(k) plan; CIGNA Group Insurance Long Term Disability Contract OOII 5/03 11
  16 CIGNA Long-Term Disability Sample Contract 4. any proceeds payable under any franchise or group insurance or similar plan. If other insurance applies to the same claim for Disability, and contains the same or similar provision for reduction because of other insurance, the Insurance Company will pay for it's pro rata share of the total claim. "Pro rata share" means the proportion of the total benefit that the amount payable under one policy, without other insurance, bears to the total benefits under all such policies; 5. any amounts paid because of loss of earnings or earning capacity through settlement, judgment, arbitration or otherwise, where a third party may be liable, regardless of whether liability is determined. Dependents include any person who receives (or is assumed to receive) benefits under any applicable law because of an Employee s entitlement to benefits. *See the Assumed Receipt of Benefits provision. Increases in Other Income Benefits Any increase in Other Income Benefits during a period of Disability due to a cost of living adjustment will not be considered in calculating the Employee s Disability Benefits after the first reduction is made for any Other Income Benefits. This section does not apply to any cost of living adjustment for Disability Earnings. Lump Sum distributions are not offset all at once. Lump Sum Payments Other Income Benefits or earnings paid in a lump sum will be prorated over the period for which the sum is given. If no time is stated, the lump sum will be prorated over five years. If no specific allocation of a lump sum payment is made, then the total payment will be an Other Income Benefit. Assumed Receipt of Benefits The Insurance Company will assume the Employee (and his or her dependents, if applicable) are receiving benefits for which they are eligible from Other Income Benefits. The Insurance Company will reduce the Employee s Disability Benefits by the amount from Other Income Benefits it estimates are payable to the Employee and his or her dependents. CIGNA Group Insurance Long Term Disability Contract OOII 5/03 12
  17 Group Insurance Life Accident Disability The Insurance Company will waive Assumed Receipt of Benefits, except for Disability Earnings for work the Employee performs while Disability Benefits are payable, if the Employee: 1. provides satisfactory proof of application for Other Income Benefits; 2. signs a Reimbursement Agreement; 3. provides satisfactory proof that all appeals for Other Income Benefits have been made unless the Insurance Company determines that further appeals are not likely to succeed; and 4. submits satisfactory proof that Other Income Benefits were denied. The Insurance Company will not assume receipt of any pension or retirement benefits that are actuarially reduced according to applicable law, until the Employee actually receives them. CIGNA will provide assistance in obtaining Social Security Benefits, which reduce the cost of disability to Employers and provide Employees with valuable income replacement as well as other benefits. Social Security Assistance The Insurance Company will, in its discretion, assist the Employee in applying for Social Security Disability Income (SSDI) Benefits, and may require the Employee to file an appeal if it believes a reversal of a prior decision is possible. The Insurance Company will reduce Disability Benefits by the amount it estimates the Employee will receive, if the Employee refuses to cooperate with or participate in the Social Security assistance program. Recovery of Overpayment The Insurance Company has the right to recover any benefits it has overpaid. The Insurance Company may use any or all of the following to recover an overpayment: 1. request a lump sum payment of the overpaid amount; 2. reduce any amounts payable under this Policy; and/or 3. take any appropriate collection activity available to it. The Minimum Benefit amount will not apply when Disability Benefits are reduced in order to recover any overpayment. If an overpayment is due when the Employee dies, any benefits payable under the Policy will be reduced to recover the overpayment. CIGNA Group Insurance Long Term Disability Contract OOII 5/03 13
  18 CIGNA Long-Term Disability Sample Contract There is no new elimination period if the disability is from the same cause and occurs within 6 months. Successive Periods of Disability A separate period of Disability will be considered continuous: 1. if it results from the same or related causes as a prior Disability for which benefits were payable; and 2. if, after receiving Disability Benefits, the Employee returns to work in his Regular Occupation for less than 6 consecutive months; and 3. if the Employee earns less than the percentage of Indexed Earnings that would still qualify him or her to meet the definition of Disability/Disabled during at least one month. Any later period of Disability, regardless of cause, that begins when the Employee is eligible for coverage under another group disability plan provided by any employer will not be considered a continuous period of Disability. For any separate period of disability which is not considered continuous, the Employee must satisfy a new Elimination Period. LIMITATIONS 24 months is the standard. Other options are available. Bipolar Affective, Psychotic Disorder and Schizophrenia are paid as any other illness. Benefit limit does not apply while confined in a hospital or institution. No limitation on subjective symptoms. Available as an option. Limited Benefit Periods The Insurance Company will pay Disability Benefits on a limited basis for a Disability caused by, or contributed to by, any one or more of the following conditions. Once [24] monthly Disability Benefits have been paid during an Employee s lifetime, no further benefits will be payable for any of the following conditions: Anxiety disorders Delusional (paranoid) disorders Depressive disorders Eating disorders Mental illness Somatoform disorders (psychosomatic illness) Alcoholism Drug addiction or abuse If, before reaching his or her lifetime maximum benefit, an Employee is confined in a hospital for more than 14 consecutive days, that period of confinement will not count against his or her lifetime limit. The confinement must be for the Appropriate Care of any of the conditions listed above. CIGNA Group Insurance Long Term Disability Contract OOII 5/03 14
  19 Group Insurance Life Accident Disability 3/12 Pre-Existing Condition Limitation is standard for most groups. Other options are available. Pre-Existing Condition Limitation The Insurance Company will not pay benefits for any period of Disability caused or contributed to by, or resulting from, a Pre-existing Condition. A "Pre-existing Condition" means any Injury or Sickness for which the Employee incurred expenses, received medical treatment, care or services including diagnostic measures, took prescribed drugs or medicines, or for which a reasonable person would have consulted a Physician within [3] months before his or her most recent effective date of insurance. The Pre-existing Condition Limitation will apply to any added benefits or increases in benefits. This limitation will not apply to a period of Disability that begins after an Employee is covered for at least [12] months after his or her most recent effective date of insurance, or the effective date of any added or increased benefits. EXCLUSIONS The Insurance Company will not pay any Disability Benefits for a Disability that results, directly or indirectly, from: 1. suicide, attempted suicide, or self-inflicted injury while sane or insane; 2. war or any act of war, whether or not declared; 3. active participation in a riot; 4. commission of a felony; 5. the revocation, restriction or non-renewal of an Employee s license, permit or certification necessary to perform the duties of his or her occupation unless due solely to Injury or Sickness otherwise covered by the Policy; In addition, the Insurance Company will not pay Disability Benefits for any period of Disability during which the Employee is incarcerated in a penal or corrections institution. ADDITIONAL BENEFITS Rehabilitation During a Period of Disability Rehabilitation benefits formalize our partnership with the Employee and leverage CIGNA's returnto-work resources. If the Insurance Company determines that a Disabled Employee is a suitable candidate for rehabilitation, the Insurance Company may require the Employee to participate in a Rehabilitation Plan and assessment at our expense. The Insurance Company has the sole discretion to approve the Employee s participation in a Rehabilitation Plan and to approve a program as a Rehabilitation Plan. The Insurance Company will work with the Employee, the Employer and the Employee s Physician and others, as appropriate, to perform the assessment, develop a Rehabilitation Plan, and discuss return to work opportunities. CIGNA Group Insurance Long Term Disability Contract OOII 5/03 15
  20 CIGNA Long-Term Disability Sample Contract A Rehabilitation Plan may include payment for medical, educational, moving accommodation or family care expenses. Participation is required for suitable candidates. This benefit is available as an option. The Rehabilitation Plan may, at the Insurance Company s discretion, allow for payment of the Employee s medical expense, education expense, moving expense, accommodation expense or family care expense while he or she participates in the program. If an Employee fails to fully cooperate in all required phases of the Rehabilitation Plan and assessment without Good Cause, no Disability Benefits will be paid, and insurance will end. Spouse Rehabilitation Benefit While an Employee is Disabled, his or her Spouse may, at the option of the Insurance Company, be eligible to participate in a Spouse Rehabilitation Plan. To be eligible, the following conditions must be met: 1. the Employee must be continuously Disabled for 12 months; 2. his or her Spouse's earnings must be 50% or less than the Employee s Covered Earnings; and 3. his or her Spouse must be determined by the Insurance Company to be a suitable candidate for rehabilitation. "Spouse," as used in this provision, means the Employee s lawful Spouse living with him or her on the date the Employee s Disability begins. The Spouse Rehabilitation Plan will end if the Employee s Spouse is no longer living with the Employee. The Spouse's Rehabilitation Plan may include, at the Insurance Company s discretion, payment of the Spouse's education expense, reasonable job placement expenses and moving expenses. It may also include family care expenses, if necessary, for his or her Spouse to be retrained under the Rehabilitation Plan. Monthly Disability Benefits will be reduced by 50% of his or her Spouse's earnings from participation in the Rehabilitation Plan. If his or her Spouse was working before the Spouse Rehabilitation Plan begins, Monthly Disability Benefits will be reduced by 50% of the increase in income that results from his or her Spouse's participation in the Spouse Rehabilitation Plan. Survivor Benefit The Insurance Company will pay a Survivor Benefit if an Employee dies while Monthly Benefits are payable. The Employee must have been continuously Disabled before the first benefit is payable. These benefits will be payable for the Maximum Benefit Period for Survivor Benefits. Benefits will be paid to the Employee's Spouse. If there is no Spouse, benefits will be paid in equal shares to the Employee's surviving Children. If there are no Spouse and no Children, benefits will be paid to the Employee's estate. "Spouse" means an Employee's lawful spouse. "Children" means an Employee's unmarried children under age 21 who are chiefly dependent upon the Employee for support and maintenance. The term includes a stepchild living with the Employee at the time of his or her death. CIGNA Group Insurance Long Term Disability Contract OOII 5/03 16