Justices: Disability Feature Payments Qualify for Offset

An employer is entitled to an offset for funds paid under a joint life insurance and disability insurance plan, the Maine Supreme Court ruled. In Nichols v. S.D. Warren/Sappi, WCB-06-431, 08/07/2007, the high court rejected the argument made by the claimant, Jeannie Nichols, that the disability payment is only a feature of the life insurance policy and thus should be entitled to an offset. "The payment that Nichols received was payable upon disability and, even though paid in a lump sum, was designed to replace income in the event of her inability to work. Accordingly, Nichols receiv...