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SUBROGATION PROCESS (Plan member's role)

Subrogation means that the Plan has the right to stand in your place and collect a debt payable to you from another party.

What that means for you

  • Let's say your disability was caused by a third party, and you took legal action against that party.

  • At the same time, you were receiving LTD benefits from the Plan.

  • The Plan has the right to stand in your place during that legal process, which means the Plan can agree to or reject any settlement offer, and receive some or all of the proceeds paid to you in the settlement.

We do this to:

  • recover LTD benefits paid to you for the loss of income due to disability - you do not need to be paid twice (once from the Plan and again from the third party)



You can hire your own lawyer to conduct your third party claim under the following conditions:

  • you inform us of your intent to pursue the claim.

  • the third party and their insurer acknowledge that your lawyer has advised them that:

         o   our consent is required in order for any settlement to be binding

         o   any payment of the claim, whether by settlement or by order of court, is made jointly to you and the Plan,  or your lawyer

              in trust.

  • your lawyer reports to us regularly on the progress of your claim.

  • you obtain our consent before proposing or accepting any settlement.

  • you do not accept any money from the claim before reaching an agreement with us about how much will be reimbursed to the  Plan.


If you pursue legal action without input from us, your LTD benefit will be suspended or terminated due to non-co-operation.


Refer to the Plan's Subrogated Rights or contact:

Lindsay Fader, Navigator

902-461-0421 Ext. 227

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