SDI Plan

May 15, 2007

I recently signed up for Supplemental Disability Insurance through my employer. I read through the exclusions section of the policy and found the following:

“we will not pay benefits for: 1) loss caused by war or any act of war, whether war is declared or not.”

This is purposely vague wording. I asked the insurance rep and got the following answer:

William,

I went to the insurance carrier and they confirmed that 9/11 and the London Bus Bombings were NOT Acts of War. The most common provision states “your plan will not cover a disability due to war, declared or undeclared, or any act of war.” “War” is generally interpreted to involve hostilities between two or more governments or sovereign nations. So, the war exclusion would generally not apply to acts of violence by individuals or political groups who are not employed by or acting on behalf of a sovereign or currently ruling government.

The war exclusion could apply if a terrorist group is allied with or acting in concert with another nation, sovereign or government in attacking the United States, or should the United States be the aggressor and declare war or attack another nation, sovereign or government.

This doesn’t completely answer the question but I am satisfied. It’s not a pleasant thought but I guess that’s the whole point of having insurance.