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Right of Reimbursement
In addition to its subrogation rights, the STD Plan is entitled to reimbursements from a covered person who receives compensation from any third parties (other than family members) for Short-Term Disability expenses that have been paid by the STD Plan. The following rules apply to the STD Plan's right of reimbursement:
  • You must reimburse the STD Plan in first priority from any recovery from a third party for the full amount of the benefits the STD Plan paid on your behalf, regardless of whether you are fully compensated by the third party for your losses.
  • Regardless of any allocation or designation of your recovery made in a settlement agreement or court order, the STD Plan shall have a right of full reimbursement, in first priority, from the recovery.
  • You must hold in trust for the benefit of the STD Plan the gross proceeds of a recovery, to be paid to the STD Plan immediately upon your receipt of the recovery. You must reimburse the STD Plan, in first priority and without any set-off or reduction for attorney fees or other expenses. The "common fund" doctrine does not apply to any funds recovered by any attorney you retain, regardless of whether the funds recovered are used to repay benefits paid by the STD Plan.
  • If you fail to reimburse the STD Plan, the STD Plan may deduct any unsatisfied portion of the amount of benefits the STD Plan has paid or the amount of your recovery from a third party, whichever is less, from future benefits payable under the STD Plan.
  • If you fail to disclose the amount of your recovery from a third party to the STD Plan, the STD Plan shall be entitled to deduct the full amount of the benefits the STD Plan paid on your behalf from any future benefits payable under the STD Plan.
  • If you fail to reimburse the STD Plan, you agree that JPMorgan Chase may deduct any unsatisfied portion of the amount of benefits the STD Plan has paid from your future earnings, and the plan administrator may, in his or her sole discretion, terminate you from eligibility to participate in the STD Plan.