Friday, May 23rd, 2008
9th Cir: Calculating an LTD Disability Payment
When a Long Term Disability Plan uses the insured’s “basic monthly earnings” to calculate the payment and defines that phrase as “the insured’s monthly rate of earnings,” the number of hours the employee actually worked per month is irrelevant, according to the 9th Circuit:
The starting point of the LTD benefits calculation is the insured’s “basic monthly […]