58-17-34 Earnings of insured--Policy provision for adjustment of benefits.
Earnings of insured--Policy provision for adjustment of benefits.
There may be a
provision as follows: "Relation of earnings to insurance: If the total monthly amount of loss of time
benefits promised for the same loss under all valid loss of time coverage upon the insured, whether
payable on a weekly or monthly basis, shall exceed the monthly earnings of the insured at the time
disability commenced or his average monthly earnings for the period of two years immediately
preceding a disability for which claim is made, whichever is the greater, the insurer will be liable
only for such proportionate amount of such benefits under this policy as the amount of such monthly
earnings or such average monthly earnings of the insured bears to the total amount of monthly
benefits for the same loss under all such coverage upon the insured at the time such disability
commences and for the return of such part of the premiums paid during such two years as shall
exceed the prorata amount of the premiums for the benefits actually paid hereunder; but this shall
not operate to reduce the total monthly amount of benefits payable under all such coverage upon the
insured below the sum of two hundred dollars or the sum of the monthly benefits specified in such
coverages, whichever is the lesser, nor shall it operate to reduce benefits other than those payable
for loss of time."
Source: SL 1966, ch 111, ch 25, § 19 (1).