Annual Deductibles
To help you meet your annual deductibles, the Plan has the following features:

First Year Credit – When you first become covered under the Major Medical Medicare Supplement Plan, you will receive credit toward your deductible for any deductible expenses you have met under your current Company medical coverage during the same year.

Three-Month Carryover – If you or your covered spouse do not meet the Major Medical Medicare Supplement Plan deductible by the end of the calendar year, any expenses incurred during the last three months of the calendar year may be "carried over" and applied to the following year’s plan deductible.

Common Accident – Only one deductible applies to all eligible medical expenses resulting from an accident in which you and your covered spouse are injured.

Coordination of Benefits
The Plan pays eligible expenses after Medicare has paid.  The Major Medical Medicare Supplement Plan also has a coordination of benefits provision that is designed to prevent duplication of payments when you or your covered spouse can collect benefits from another coverage plan.

Under this provision, when coverage is provided by both the Company and another coverage plan, you or your covered spouse can receive up to a total of 100% of total allowable expenses from both plans – but 100% is the maximum.

Under this provision, there are order of benefit determination rules which determine whether this Plan is a “primary coverage plan” or a “secondary coverage plan” when compared to another coverage plan.  In general, the primary coverage plan pays as if the secondary coverage plan did not exist.  When the Plan is secondary, it pays after those of another coverage plan, and eligible expenses may be reduced because of the allowable expenses paid by the primary coverage plan.

Coordination of benefits under this Plan excludes individual or family insurance, unless permitted by law.

Subrogation and Refund of Expenses
In summary, subrogation under the Plan is the substitution of one person or entity in the place of another with reference to a lawful claim, demand or right.  The Plan shall be subrogated to and shall succeed to all rights of recovery, under any legal theory of any type, for the reasonable value of services and benefits provided under this Plan to you from:

1. third parties, including any person alleged to have caused you to suffer injuries or damages;
2. your employer;

   or

3. any person or entity obligated to provide benefits or payments to covered persons, including benefits or payments for underinsured or uninsured motorist protection (these third parties and persons or entities are collectively referred to as "Third Parties").