Returning From Mat Leave: Insurers Stop Reset of Pre-existing Conditions Clauses for Long-Term Disability

Recently, major Canadian insurers have stopped applying the pre-existing conditions clauses for long-term disability insurance with employees returning to work from maternity leave.
Categories: Employee Benefits
Jan 16th, 2020 | By: CapriCMW

Long-term disability insurance policies typically contain pre-existing conditions clauses. It is common to see wording which specifies that any disability arising within the first 12 months of coverage is excluded if it resulted from a sickness or injury that the employee had been treated for within 90 days prior to the effective date.

With group and employee benefits plans, members who go on leave and stop contributing to premiums are often treated as new employees upon returning in that the pre-existing conditions clause is reset.

Recently, major Canadian insurers have stopped applying the pre-existing conditions clauses with women returning to work from maternity leave. Previously, any care received by the employee (including prescription medications) for a medical condition/illness during the 90 days before returning to work, would preclude coverage for the condition/illness upon re-enrolment in the benefits plan.

Currently, seven major insurers (Co-operators Group Ltd., Desjardins Insurance, Empire Life Insurance Co., iA Financial Group, Manulife Financial Corp., RBC Insurance and Sun Life) have moved towards the approach that employees should retain the same benefits after they return from maternity leave as they had before. It is expected that more insurers will follow suit.

Source: "Mat leave returners no longer facing reset of LTD pre-existing clause" by Kelsey Rolfe of Benefits Canada on January 8, 2020.


Your CapriCMW Benefits team is here to help with short and long-term strategies around the structure of your employee benefits and retirement programs. Contact a CapriCMW Benefits Advisor for more information.

 

Recent Blog Posts

Business Insurance / Construction, Real Estate, mass timber, sustainable housing
BC Proposes Building Code Changes to Allow 18-Storey Mass Timber Buildings

The provincial government has proposed changes to the British Columbia Building and Fire Codes (BC…

Dec 27th, 2023 | By: CapriCMW
Business Insurance / Small Business, SME, commercial property
Applications Open for BC's Securing Small Business Rebate Program

As of November 22, 2023, small businesses in BC can apply for a new provincial rebate to help them…

Dec 12th, 2023 | By: CapriCMW
Employee Benefits / employment law, employee benefts, pay transparency, pay equity
New Pay Disclosure Requirements Now in Effect for BC Employers

As of November 1, 2023, employers are required to include wage or salary ranges in job postings open…

Nov 16th, 2023 | By: CapriCMW
Search the Blog
photo-10.jpg

Confidence and Freedom

At CapriCMW, we provide personalized insurance and custom risk solutions to give you the confidence and freedom to focus on what matters to you. Talk to an Advisor or get a quote today.

Get a Quote    Or call 1-800-670-1877

Can’t find what you are looking for? Ask us!