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Subrogation of Benefits
The purpose of the STD Plan is to provide wage protection and pay for approved period of disability that are not the responsibility of any third party. The STD Plan has the right to recover from any third party responsible for compensating you for time lost from work with respect to an illness or injury that results in the STD Plan providing payment to you for approved periods of disability. This is known as subrogation of benefits. The following rules apply to the STD Plan's subrogation of benefits rights:
  • The STD Plan has first priority from any amounts recovered from a third party for the full amount of wage replacement benefits it has paid on your behalf, regardless of whether you are fully compensated by the third party for your losses.
  • You agree to help the STD Plan assert this right when requested.
  • If you fail to help the STD Plan use this right when requested, the STD Plan may deduct the amount the STD Plan paid from any future wage replacement benefits payable under the STD Plan.
  • The STD Plan has the right to take whatever legal action it deems appropriate against any third party to recover the wage replacement benefits paid under the STD Plan.
  • If the amount you receive as a recovery from a third party is insufficient to satisfy the STD Plan's subrogation claim in full, the STD Plan's subrogation claim shall be first satisfied before any part of a recovery is applied to your claim against the third party.
  • The STD Plan is not responsible for any attorney fees, attorney liens, or other expenses you may incur without the STD Plan's prior written consent. The "common fund" doctrine does not apply to any amount recovered by any attorney you retain regardless of whether the funds recovered are used to repay benefits paid by the STD Plan.
  • If you receive a subrogation request and have questions, please contact the claims administrator.