Is There A Minimum Percentage Of Premiums That Disability Carriers Have To Pay Out For Claims?

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   Kelly Moser

   Social Media Strategist, Disability Insurance Services, California

   Yes, across the country most, if not all, departments of insurance regulators require a minimum percentage of the premiums to be paid back to the policy holders.  Depending on the state, the average requirement is between 60% and 65%.  Generally, what you will see is the actual claims results increasing this percentage during periods of recession as many policy holders are inclined to go out on claim as a result of diminishing employment opportunities.

   Answered on August 19, 2013

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