Group Business Overhead Expense Insurance

For Life's Major Moments

If illness or injury ever prevents you from working, the American College of Obstetricians and Gynecologists Group Business Overhead Expense Insurance can help keep your practice afloat. Sponsored by ACOG and underwritten by New York Life Insurance Company, our plan provides:

  • Coverage amounts up to $15,000 per month
  • 14-day and 30-day waiting period options
  • Benefits paid up to 24 months
  • Disability defined as "Your Own Occupation"
  • Premiums may be tax-deductible

This coverage is specifically designed for ACOG members and provides the insurance protection you may need should your income ever stop. The plan benefits can help pay for your office expenses without the need to reach into your personal savings.

This product is not available in all states.

Frequently Asked Questions

How much insurance can I request?

You can choose coverage from $1,000 to $15,000 (up to $5,000 if between the ages of 55 and 60) per month depending upon your needs and requirements. Plus, benefits can be paid directly to you for up to 24 months for a total disability due to injury or sickness. Successive periods of disability are considered one unless due to unrelated causes or separated by a return to work of 90 days. For any total disability period of less than one month, your plan benefits will be pro-rated. There are two plan designs available to you. Plan A comes with a 14-day waiting period while Plan B has a 30-day waiting period. A waiting period means the number of consecutive days for which you must be totally disabled before benefits can be paid.

Please refer to the Benefits and Rates Chart provided in the brochure to review benefit levels and rates for your age group.

Premium Waiver: If you are totally disabled and receiving benefits, any further premiums becoming due for your coverage are waived after the waiting period and during the continuation of your benefit payments. When your benefit payments for the total disability are no longer payable, you may continue your coverage by resuming payment of premium provided you are still eligible for the coverage; and your insurance would not then be ceasing under any termination provision.

Survivor Protection: If your death occurs while you are receiving benefits, your estate will receive your benefits for three months after your death, or until the date your practice is sold, or until the full 24-month benefit is used (whichever occurs first). This could enable your spouse or other participants in your estate to keep your practice functioning while they evaluate their options and make well-informed decisions.

Is Business Overhead Expense Insurance tax deductible?

Premiums May Be Tax-Deductible: Business Overhead Expense premiums are usually tax-deductible as a direct business expense.

Be sure to consult your personal tax advisor for guidance.

Am I locked in if I apply?

After your application is approved, we’ll immediately send you a Certificate of Insurance. Carefully review the Certificate. If you aren’t completely satisfied with the terms of your Certificate of Insurance, you may return it, without claim, within 30 days. Your coverage will be invalidated and you will be sent a full refund — no questions asked..

How does the plan work?

Total Disability Benefits: Benefits will be paid directly to you starting on the first day after the waiting period you select. You are considered to be totally disabled if you are wholly and continuously prevented from performing the material and substantial duties of your regular occupation and you are not engaged in any gainful occupation. The suspension, revocation, or surrender of a professional or occupational license or certificate does not constitute total disability. The period of total disability must result from disability. It must begin while you are covered under the group policy and continue beyond the end of the waiting period.

In addition, your total disability requires the regular care of a physician. The Physician that provides the regular care for your disability cannot be you, your immediate family, or any member of your household. Physician also does not include your business partner, associate, or employee.

Presumptive Total Disability Benefits: You will be considered Totally Disabled if a covered illness or injury results in total and irrecoverable loss of one of the following which cannot be restored or corrected by medical or surgical treatment: speech; hearing in both ears; sight of both eyes; or the use of both hands, both feet or one hand and one foot—even if you can still perform some or all of your regular duties.

How long will benefits last?

Monthly benefits will be paid up to the maximum benefit period. The benefit will end on the date: you fail to give required proof of continuing total disability of 24 months for a covered Total Disability; This period will end earlier if your total disability ends; the maximum benefit period ends; you die; or the sale of your business or practice or other discontinuance of your business or practice occurs, if such sale or discontinuance is for reasons other than total disability.

Who is eligible to apply?

You are eligible to apply for coverage if:

  • You are under age 60
    • If you are under age 55, you can apply for monthly coverage up to $15,000 per month
    • If you are between the ages of 55 and 59, you can apply for monthly coverage up to $5,000 per month
  • You are an ACOG member in good standing
  • You reside in the U.S (except MO,NH,NV,OR,VT,WA, or Territories) or Canada (except Quebec)
  • You are at FULL-TIME WORK: actively performing the regular duties of your normal occupation on the basis of at least 26 hours per week, at the location where such duties are normally performed

You must be at FULL-TIME WORK on the date your insurance is to take effect. If you are not, your insurance will take effect on the day you resume such work. Your acceptance is subject to your insurability.

An insured person may continue coverage if he ceases to be at FULL-TIME WORK due to a temporary layoff, a leave of absence, or a leave of absence required by state law or by the Family and Medical Leave Act of 1993 (FMLA). See your Certificate of Insurance for complete details.

When will coverage end?

Your coverage will continue until you reach age 70 unless:

  • The group policy ends
  • The policy is amended to end insurance for your class
  • Premium is not paid when due
  • You retire or cease to be actively at work for reasons other than total disability, or due to a leave that meets the conditions stated in a Continuation provision of the group policy
  • You enter full-time active military duty
  • You reside outside the United States
  • You have been on foreign travel for longer than 3 months
  • Benefits have been payable for the Maximum Benefit Period
  • You cease to be a member of the association
  • You no longer incur covered expenses for your business as described in the Certificate of Insurance

Are there any exclusions?

Yes, refer to the brochure for more information.

Who administers the program?

ACOG’s Group Insurance Program is administered by Pearl Insurance. Pearl Insurance strives to provide members with the most relevant, competitively priced member benefit insurance packages for individuals and their families. Pearl Insurance has been providing associations like ACOG with quality group coverage for over 65 years.

Who is the plan underwritten by?

ACOG Group Business Overhead Expense Insurance is underwritten by New York Life Insurance Company (New York Life). New York Life is a leader in the association group insurance field, providing life and health insurance plans for associations. The company has an enduring commitment to its customers' financial security. Regardless of the state of the economy or the stock market, New York Life bases its financial decisions on the guiding principle of serving its clients. New York Life Insurance Company has received the highest ratings for financial strength currently awarded to any U.S. life insurer by all four major rating agencies including Moody’s Investor Service (Aaa), Standard & Poor’s (AA+), Fitch Ratings (AAA), and A.M. Best (A++).*

New York Life is licensed/authorized to transact business in all of the 50 United States, the District of Columbia, Puerto Rico, and Canada. However, not all group plans it underwrites are available in all jurisdictions.

For more details, including features, costs, eligibility, renewability, limitations, and exclusions download the Group Business Overhead Expense Insurance brochure.

*Individual Third Party Ratings Reports (as of 9/12/19)


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