Date: Mon, 7 Sep 1998 13:25:12 -0400
From: Jack Artale <121639@email.msn.com>

Subject: Setoffs For SSDI

Jack

Thank you for running this while Judy is working on her action.  I just
read an article in the Los Angeles Daily Journal August 24, 1998
regarding Setoffs by Disability carriers.  The article was written by
Joseph Ribakoff a Long Beach, California civil litigator who purports to
focus on disability insurance cases, both erisa and individual.  He cites
the case Standard Ins. Co v Saklad 127F3d1179 (9th Cir, 1997) for the
proposition that an insurance company cannot setoff a ssdi payment
because disability benefits are exempt from levy in almost every state
and if you cannot levy on exempt property, an insurer cannot obtain a
setoff against that property either.  Here is a copy [the link] of the case.


       FindLaw: Laws: Cases and Codes: 9th Circuit Court Opinions

              http://laws.findlaw.com/9th/9655853.html

                      U.S. 9th Circuit Court of Appeals

                       STANDARD INSURANCE CO. v SAKLAD
                                No. 9655853

STANDARD INSURANCE COMPANY, an
Oregon corporation,
Plaintiff-counter-                                    No. 96-55853
defendant-Appellee,
D.C. No.
v.                                                    CV-93-05472-JMI

JEROME W. SAKLAD, an individual,                      OPINION
Defendant-counter-
claimant-Appellant.


Appeal from the United States District Court
for the Central District of California
James M. Ideman, District Judge, Presiding

Argued and Submitted
October 9, 1997--Pasadena, California

Filed: October 31, 1997

Before: Diarmuid F. O'Scannlain, Ferdinand F. Fernandez,
and Sidney R. Thomas, Circuit Judges.

Opinion by Judge Fernandez

_________________________________________________________________



I suspect that your claim is controlled by ERISA because individual
policies generally do not have reduction of benefits due to ssdi.  You
may want to look at Saklad and see if it can benefit you.  Keep in mind
that saklad did not involve ssdi benefits.  but the language in the
conclusion and last paragraphs of the opinion is very broad.  Hope this
helps.  Penny

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