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Senate advances bill to bar disability-insurance offsets, citing consumer protection
Summary
Senate Bill 157 would prohibit insurers from reducing private disability income benefits by Social Security payments; sponsors framed it as protecting consumers who buy a fixed benefit, while critics warned it could affect premium pricing. The bill passed to third reading, 19–5 (5 absent).
A Utah Senate bill that would prevent disability insurers from offsetting Social Security disability payments against privately purchased disability income policies advanced to third reading on Feb. 12, 1992.
The sponsor described a constituent who bought a $2,000-a-month disability policy but, after being awarded Social Security disability, received only $1,300 because the insurer subtracted $700 in…
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