Accident Benefits – Income Replacement Benefit

Challenge:

Our experts were asked to review an Income Replacement Benefit (IRB) file for an insurance company that was paying out the maximum amount to determine what the correct IRB should be for settlement purposes.

Solution:

After our initial interview raised some concerns, we contacted the employer for their payroll records to ascertain when the individual’s income was earned in 4 and 52 week periods—as reported on the employer OCF-2 form—since these amounts were not consistent with income-tax information provided.

Result:

Williams Meaden & Moore was able to determine that the IRB was almost 50% less than the maximum amount the insurer had been paying, which significantly reduced the present value of future IRBs payable in this case.