Some policies, particularly newer policies, contain “foreign residency” provisions
that require you to be in the U.S. (or sometimes, the U.S., Canada or
Mexico) in order to remain eligible to receive disability benefits.
Oftentimes, the disability policy will allow for a certain period of
time that you can be out of the country and then cut off benefits if you
do not return.
At the same time, these provisions do not say what happens if your
failure to return is due to something that is not your fault—like the
coronavirus, quarantines or travel bans. Consequently, this is a
difficult question that would likely hinge on the legal interpretation
of the exact language in your policy, the law of your jurisdiction, and
the court who is asked to resolve the issue, if the insurer is not
willing to waive the terms of the contract or come to a compromise.
Action Step: Review your policy to
determine whether it has a foreign residency provision. If it does and
you are concerned that you may not be able to return to the U.S. in time
to comply with its provisions, contact a disability lawyer.
Each dentist’s claim for disability benefits involves different
facts, disabling conditions, policy requirements, insurance companies,
etc. While our attorneys are making an effort to share general knowledge
with the dental community and answer dentists’ questions about the
impact of the coronavirus, this not a substitute for individualized
advice from an experienced disability insurance lawyer. If you would
like to speak with our attorneys and have them take an in-depth look at
your particular situation, please feel free to contact us directly.