GC 3100.21A SECTION 8 - INSURING PROVISIONS 2003 SECTION 8 - INSURING PROVISIONS LUMP SUM PAYMENTS: Other Income Benefits that are paid in a lump sum, excluding benefits received from the Employer’s Retirement Plan, will be prorated by AUL over the stated period of time the lump sum was projected to apply. Lump sums projected to cover a Person’s life expectancy will be prorated based on appropriate actuarial tables. If the projected period of time that a lump sum is intended to cover is not stated, the lump sum will be prorated over a period of 60 months. A lump sum payment from an Employer’s Retirement Plan will be prorated over 60 months. However, if such lump sum is rolled to an annuity or retirement account that does not pay a benefit prior to the end of the Maximum Benefit Duration stated in the Schedule of Benefits, then the Gross Monthly Benefit will not be reduced by that lump sum payment. Regardless of how benefits from the Employer’s Retirement Plan are distributed, AUL will treat contributions made by a Person and Participating Unit as if they were distributed simultaneously throughout a Person’s lifetime. APPLICATION FOR OTHER INCOME BENEFITS: If a Person, spouse or Child(ren) are or become eligible for any Other Income Benefit, they must: 1) apply for the Other Income Benefits; and 2) appeal any denial for the Other Income Benefit that appears unreasonable. Until approval or denial of any Other Income Benefits, AUL will make payments under either Method A or B below as chosen by a Person in a written agreement provided by AUL. Method A: AUL will estimate the amount of the Other Income Benefits that will be received and reduce the regular Monthly Benefit by this amount. If the Other Income Benefits are estimated, a Person's regular Monthly Benefit will be adjusted when AUL receives proof of the amount awarded or that benefits have been denied. If the application is denied, the amount withheld based upon estimates will be returned to the Person in a lump sum. During subsequent appeals of denial of benefits, Method B will be used. Method B: AUL will pay the regular Monthly Benefit after the Elimination Period with no reduction for estimated benefits until the appropriate entity reaches a decision. When a decision is reached, a Person must send AUL a copy of the determination and reimburse AUL for any overpayment made as a result of that decision, regardless of whether or not the coverage is still in force on the date the Person recovers such amount. Additionally, if an award is made, AUL will reduce the Monthly Benefit by the amount of the Other Income Benefits the Person received, in accordance with the terms of the Group Policy. If a Person chooses Method B and has not applied for the Other Income Benefits to which he may be entitled, the Person must agree to apply for such benefits immediately. If a Person does not apply for the Other Income Benefits immediately, AUL will automatically use Method A.