Questions & answers · Disability insurance
After my disability insurance claim for an illness or injury, what about repayment, subrogation or premium changes?
Disability insuranceAfter paymentTexasChecked Nov 6, 2026
From K.Actuary, founded by Sangmin Kwon, ASA · sources checked 2026-11-06 · Source: Texas Insurance Code · Chapter 541 · § 541.060(a)(5) (Unfair Settlement Practices) View original ↗
In short
What this means
There is one rule here you can hold an insurer to. In Texas it is an unfair settlement practice to delay or refuse a settlement offer under your own first-party coverage on either of two grounds: that other coverage may be available, or that third parties are responsible for the damages [1]. So the line "someone else may owe this" is not by itself a reason to sit on your benefit.
But read the end of that rule: except as may be specifically provided in the policy [1]. Whether a policy provides for an offset varies by policy. If it does, it is usually in a clause about other income you receive. Any such offset comes from your contract, not from a state law in these sources.
These sources set no rule about paying a benefit back. They do not say whether your price changes after a claim. So ask for the clause by name. Read it before you agree to any cut.
Your next step
Ask your insurer in writing for the part of your policy on other income. It is sometimes titled Offset or Coordination. The sources set no deadline for that answer, so put a date on your letter. If the insurer is waiting on another payer, quote the rule above back to it [1].
Check it yourself
Look in your policy for the clause on other income you get. It may be titled Other Income Benefits, Offset, or Coordination. Whether your own benefit can be reduced, and by how much: "Don't know yet" here.
Where this comes from (1)
[1] Texas Insurance Code · Chapter 541 · § 541.060(a)(5) (Unfair Settlement Practices) · checked 2026-11-06
refusing, failing, or unreasonably delaying a settlement offer under applicable first-party coverage on the basis that other coverage may be available or that third parties are responsible for the damages suffered, except as may be specifically provided in the policy;
How we found this
We matched your question to 1 official source, quoted the exact lines, and re-checked each quote against its source on 2026-11-06.
What we don’t know yet
Your own plan or notice may say something different. If your letter cites another rule, send it and we will look again.
Every answer is checked against the official rule it quotes.
Information only — not legal advice. Your plan, insurer or agency decides.
This answer quotes the official sources listed above, with the date we checked them. Your own policy, notice and state rules control. We are not your lawyer or your insurer. We don’t file, argue or negotiate claims for you — you send any letter or form yourself.
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