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Group Business Overhead Expense Insurance

If something 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 The College 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
  • Up to 24 months of insurance protection
  • Disability defined as "Your Own Occupation"
  • Premiums may be tax-deductible

This coverage is specifically designed for members of The College 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 select?

You can choose coverage from $1,000 to $15,000 per month depending upon your age needs and requirements. Plus, benefits can be paid directly to you for up to 24 months for each 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 at the beginning of a period of disability during which you must be totally disabled; for which no benefits are payable; and which must elapse before benefits start.

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 your coverage, just return the Certificate within the 30-day period and you’ll be under no further obligation.

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 occupation and you are not performing any occupation for wage, remuneration, or profit on a full-time or part-time basis. 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: Benefits will be paid directly to you starting on the actual date of loss, with no waiting period, if you suffer 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; 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 actively engaged full-time (minimum 26 hours or more per week for 90 consecutive days prior to application) in duties of your occupation
  • You are a College member in good standing

You must be actively at 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 actively at 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
  • Insurance ends 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 active military duty for more than 30 days, subject to the Reinstatement following Military Service provision
  • 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

Are there any exclusions?

Yes, refer to brochure for complete details.

Business Overhead Expense Insurance from The American College of Obstetricians and Gynecologists is administered by Pearl Insurance, Peoria Heights, IL. Pearl Insurance license numbers: AR #0100106279, CA #0F76076, MN #8698, OK #0100102347, TX #1442641

Who is the Plan underwritten by?

ACOG Group Business Overhead Expense Insurance is underwritten by New York Life Insurance Company, 51 Madison Ave., New York, NY 10010, under Group Policy No. G-30464-0 on Policy Form GMR-FACE/G-30464-0.

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

Complete details, including features, costs, eligibility, renewability, limitations, and exclusions are in the Certificate of Insurance. Certain state restrictions apply.

New York Life's state of domicile is New York, and NAIC ID # is 66915.

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