Company Issues Bulletin Outlining Impact of Pending Inquiries


WESTBROOK, Maine -- Aug. 13, 2008 -- Disability RMS, the nation's leading provider of turnkey disability risk management products and services, today announced the release of a bulletin written by Andrew J. Bernstein, vice president, law. The bulletin, directed to Disability RMS customers, addresses the current focus on the practices of many long-term disability insurers in assisting their participants in obtaining Social Security Disability benefits.

On April 1, 2008, The New York Times published a story attacking the private disability insurance industry for allegedly engaging in improper and deceptive practices by supposedly forcing insureds who will not qualify for Social Security Disability benefits to apply for such benefits. The article incorrectly contends that private disability insurers are responsible for the Social Security Administration's massive backlog of disability benefit applications.

Iowa Sen. Charles Grassley, the senior Republican on the Senate Finance Committee, sent letters to the nine largest disability insurers requesting detailed information regarding their respective Social Security Disability assistance programs for insureds. Sen. Grassley has been quoted as calling "abominable" the fact that sick and injured people must often wait more than a year before their claims can be decided by a Social Security Administration administrative law judge.

The Disability RMS bulletin outlines the many actions that the disability insurance industry has taken to call attention to the true facts concerning the Social Security Administration backlog and the value of private insurers' assistance to their insureds in obtaining Social Security Disability benefits. "As is our practice, Disability RMS continuously monitors industry developments and shares our analysis -- and the potential impact of these developments -- with our customers," said Bernstein. "The rates of approval for applicants who received assistance from disability insurers are significantly higher than those of other applicants. Further, the backlog is due to chronic underfunding of the Social Security Administration, an insufficient pool of administrative law judges, and the escalation of disability benefit claims from aging baby boomers," noted Bernstein. A complete copy of the bulletin can be found on the Disability RMS Web site at www.disabilityrms.com.

Bernstein has more than 20 years' experience in the disability insurance industry and is a frequent author and speaker on subjects including best practices in disability claims management and disability fraud. As vice president, law, for Disability RMS, Bernstein provides legal guidance to the organization and ensures that Disability RMS claims and business practices are legally compliant. He also works closely with Disability RMS customers to help them achieve their business objectives within a legally sound framework. Prior to joining Disability RMS in 2001, Bernstein co-owned a disability claims management consulting firm. Past experience also includes a variety of leadership roles in Unum's legal department and disability claims operations. Bernstein is a past chair of the American Council of Life Insurance-Health Insurance Association of America's Joint ERISA Task Force.

About Disability RMS
Disability RMS is the nation's leading provider of turnkey disability risk management products and services with more than $400 million of disability premium under direct management. Located in Westbrook, Maine, Disability RMS has more than 350 employees with the specialized product knowledge and service skills required to succeed in today's complex risk protection market. In 2006 and 2007, the Best Companies Group, in partnership with the Maine Department of Labor, named Disability RMS as the Best Large (250+ employees) Company to Work for in Maine.
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