I’m Getting Paid Under “Reservation of Rights” — What does this mean?

When you review your policy prior to filing a claim, you are probably going to run into terms in the policy that you don’t understand.  One of the terms that we get asked about most is the “reservation of rights” clause in a policy, although this is not the only “legalspeak” term you are going to run across.  Below is an explanation of what this term means.  This illustrates the point that  it is important to get a competent professional to review your policy and give you advice about your rights under the policy, and also to explain the meanings of these terms.  At Cody Allison and Associates, we stand ready to help you.

If you are receiving long-term disability benefits and have been told it’s under “Reservation of Rights”, this means that while the insurance company is still reviewing your claim to approve benefits or deny benefits, they will pay you under Reservation of Rights.  After the insurance company reviews your claim and makes a decision, they will either start paying your claim normally and no longer under Reservation of Rights or they can deny your claim and you will receive no more benefits.

If you are getting paid under Reservation of Rights, please call Cody Allison & Associates at (615) 234-6000 and we will be happy to go over your claim with you free of charge. You can also e-mail our office at cody@codyallison.com.   Put our experience to work for you.  For more information go to www.LTDanswers.com.