Business Overhead Expense

Business Overhead Expense  


Business Overhead Expense insurance pays the normal and fixed expenses of running your office while you are disabled so you don't have to use your personal disability income.

Examples of Covered Expenses Include:

  • Rent
  • Deposits to Health Savings Accounts
  • Employee Salaries
  • Utilities
  • Association Dues
  • Professional Liability Premiums

Members under age 65, working full-time, are eligible to apply for benefits of up to $10,000 per month. Medical specialty definition of disability is included. Benefits are payable as long as you remain disabled up to a maximum of 12 months. In a group practice, it pays your share of fixed expenses.

To Apply

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Group Business Overhead Expense Insurance
Underwritten by New York Life Insurance Company
For CMA/County Medical Association & Society Members


Helps you maintain your practice while you are disabled
Business office expenses need to be met, even if you aren’t around to pay them. The CMA/County Medical Association and Society sponsored Group Business Overhead Expense Insurance Plan can help you keep your practice running by providing financial coverage for your normal operating expenses while you are recovering from a disability. You will be able to take the time needed to recuperate while finding comfort in knowing that your office and staff will be ready and waiting for your return.

As a member, you are eligible to request coverage under this group plan if you are:

  • Under age 65
  • At FULL-TIME work*
  • A resident of the U.S. or Puerto Rico;** except territories

For rate information and to apply, click on the "Download Now" button.

Eligible Overhead Expenses
This Plan is designed to provide coverage for the normal operating expenses of your current practice which are incurred while you are Totally Disabled (as defined below). Eligible Overhead Expenses include, but are not limited to:

  • Office rent
  • Interest payments on existing business equipment or furniture loans
  • Utilities (heat, water, telephone, electricity, etc.)
  • Employees’ salaries and payroll taxes
  • Rental, lease or depreciation of office equipment
  • Monthly average of taxes on the premises
  • Insurance premiums
  • Accounting fees, to the extent that such expenses are normal and customary in the conduct and operations of the business
  • Professional membership and/or subscription dues
  • Such other fixed expenses as are normal and customary in the conduct and operation of your office

If you’re incorporated, a partner or joint tenant, Eligible Overhead Expenses include only your share of overhead expenses.

Eligible Overhead Expenses do not include: the salary, fees, drawing accounts, profits, or any compensation for you, your partner or any member of your profession employed by or working for you; any individual hired after the date your disability begins; income taxes; personal expenses; charitable contributions; the cost of purchase of office equipment, goods or merchandise; or the payment of principal on any indebtedness.

* FULL-TIME work means the active performance of the regular duties of your normal occupation for pay or profit on the basis of at least 30 hours per week at the place such duties are performed.
**Not available in all states at this time. Contact the Administrator for current information.

How The Plan Works
The Plan is designed to pay Monthly Benefits when you are Totally Disabled. Totally Disabled means an incapacity from an injury or sickness that completely and continuously prevents you from performing with reasonable continuity the material and substantial duties of your regular medical specialty.

Monthly Benefit
You may apply for a Monthly Benefit of $1,000 to $10,000 per month in ($1,000 units). However, the actual monthly benefit payable will not exceed the lesser of the covered Expenses incurred for each month of Total Disability, the monthly benefit in force on the date the Total Disability began or of the average of monthly Eligible Expenses incurred during the six month period immediately preceding your Total Disability. To find the amount that’s appropriate, check your records for your actual expenses and calculate your average monthly expenses for the past twelve months.

For some benefit amounts requested, a financial questionnaire may be required as evidence of insurability.

Waiting Period
A waiting period is the number of consecutive days you must be Totally Disabled before benefits can begin. This plan has a 60 day waiting period.

Benefit Period
A Benefit Period is the duration of how long monthly benefits are payable after you have satisfied your waiting period for a Total Disability. This plan offers a maximum benefit period of 12 months.

How To Determine Your Cost for Other Monthly Benefits
If you wish to request a Monthly Benefit (in $1,000 units) for an amount not shown, please contact AMBA for assistance.


Plan Features


Waiver of Premium Contributions
If you have been Totally Disabled for six consecutive months, premium contributions due thereafter will be waived for as long as benefits are payable for that Total Disability, provided the disability began before age 70.

Benefits for Recurring Disability
Successive periods of disability which are due to the same or related causes and are not separated by return to FULL-TIME WORK for at least 180 consecutive days will be considered as one period of disability, as will unrelated disabilities that are not separated by return to FULL-TIME WORK. Disabilities which meet these separation requirements will be treated as a new disability, subject to a new benefit and waiting period.

Tax-Deductible Premium Contribution
The IRS currently recognizes “Group Business Overhead Expense Insurance” as a legitimate business expense and allows deductions of its premium contributions as a business expense under Rev. Rul. 55-264, 1955-IC.B11. This aspect should be discussed with your financial advisor.

SEND NO MONEY NOW 30-Day Free Look
As a member in good standing, you are NOT required to send any premium payment with your application. All applications will be processed promptly and coverage issued for every eligible member whose evidence of insurability is found to be satisfactory.

We want you to be 100% satisfied with your coverage before you pay. As soon as your request for coverage is approved, you’ll be sent a Certificate of Insurance with more information about your group coverage benefits. Review it for a full 30 days.

If you are not satisfied for any reason: Return your Certificate marked “Cancel” and your coverage will be invalidated, no questions asked, provided there have been no claims. You’ll owe nothing.

When Coverage Starts (Effective Date)
You will become insured on the date specified by New York Life Insurance Company provided the first premium contribution is paid when due, satisfactory evidence of insurability has been submitted and you have been at FULL-TIME WORK for a period of six consecutive months on the Certificate effective date.

If you are not at FULL-TIME WORK as required, coverage will not become effective until the day you are at FULL-TIME WORK provided such date is within six months of the date insurance would have been effective and you are still eligible for insurance.

Payment of a premium contribution for insurance does not mean there is any coverage in force before the effective date specified by New York Life Insurance Company.

When Coverage Ends 
Insurance can remain in force until you reach age 70 provided: Your Association/Society membership is maintained, you continue to incur covered expenses for the business, premium contributions are paid when due, you do not end the insurance, you do not enter full-time active duty in the armed forces (except for training purposes of two months or less), the group policy is not terminated or modified by the policyholder or New York Life Insurance Company to exclude coverage for the group of individuals to which you belong or the association ceases to be a participating organization.

Medical Requirements
New York Life reserves the right to request medical information needed to determine an applicant’s eligibility for coverage. Based upon the age of the person proposed for insurance and the amount of coverage requested, a physical exam, EKG, blood test or other medical information may be required.

Not all applicants will have to supply additional information. However, if required, we will arrange for an independent professional paramedic to contact you to perform these simple tests at your convenience. The exam and blood test will be paid for by the plan.

Request for insurance will be processed promptly and coverage will be issued for members whose evidence of insurability has been found to be satisfactory.

Exclusions & Limitations
The plan does not provide benefits for any disability that occurs during or is due or related to: intentionally self-inflicted injury while sane or insane, engagement in war or any act thereof, or incarceration or participation in (except as a victim) an illegal occupation/activity or the commission of a crime, flying in any aircraft, except as a fare-paying passenger on a licensed commercial carrier: PRE-EXISTING CONDITION (except as noted below) or any impairment or disease specifically excluded from your coverage.

No benefits are payable for any disability for which you are not under the regular care of a licensed physician or surgeon other than yourself, your business associate, or member of your immediate family or household.

A PRE-EXISTING CONDITION is an injury or illness for which you consulted a physician, took medication, or received medical services or supplies during the immediate 12-month period prior to becoming insured under this plan. Benefits are not payable for a disability due to a PRE-EXISTING CONDITION until the end of the earlier of: 12 consecutive months during which you have not consulted a physician, taken medication, or received medical services or supplies; or 24 months.

This web page contains a partial description of some of the principal provisions and definitions of the coverage. The complete terms and conditions are set forth in the policy issued by New York Life Insurance Company to the CMA/County Medical Associations & Societies.

Underwritten by:
New York Life Insurance Company
51 Madison Avenue / New York, NY 10010
Under Group Policy No. G-29323-0
on Policy Form GMR-FACE/G-29323-0

Important Notice:

How New York Life Obtains Information and Underwrites Your Request For Group Business Overhead Expense Insurance

In this notice, references to “you” and “your” include any person proposed for insurance. Information regarding insurability will be treated as confidential. In considering whether the person(s) in your request for insurance qualify for insurance , we will rely on the medical information you provide, and on the information you AUTHORIZE us to obtain from your physician, other medical practitioners and facilities, other insurance companies to which you have applied for insurance and MIB, Inc. (“MIB”). MIB is a not-for-profit organization of insurance companies, which operates an information exchange on behalf of its members. If you apply for life or health insurance coverage, a claim for benefits is submitted to an MIB member company, medical or non-medical information may be given to MIB, and such information may then be furnished by MIB, upon request, to a member company.

Your AUTHORIZATION may be used for a period of 24 months from the date you signed the application for insurance, unless sooner revoked. The AUTHORIZATION may be revoked at any time by notifying New York Life in writing at the address provided. Your revocation will not be effective to the extent New York Life or any other person already has disclosed or collected information or taken other action in reliance on it, or to the extent that New York Life has a legal right to contest a claim under an insurance certificate or the certificate itself. The information New York Life obtains through your AUTHORIZATION may become subject to further disclosure. For example, New York Life may be required to provide it to insurance, regulatory or other government agencies. In this case, the information may no longer be protected by the rules governing your AUTHORIZATION.

MIB and other insurance companies may also furnish New York Life, its subsidiaries or the Plan Administrator with non-medical information (such as driving records, past convictions, hazardous sport or aviation activity, use of alcohol or drugs, and other applications for insurance). The information provided may include information that may predate the time frame stated on the medical questions section, if any, on this application. This information may be used during the underwriting and claims processes, where permitted by law.

New York Life may release this information to the Plan Administrator, other insurance companies to which you may apply for life and health insurance, or to which a claim for benefits may be submitted and to others whom you authorize in writing, however, this will not be done in connection with test results concerning Acquired Immune Deficiency Syndrome (AIDS) or Human Immunodeficiency Virus (HIV). We may also make a brief report of your protected health information to MIB, but we will not disclose our underwriting decision.

New York Life will not disclose such information to anyone except those you authorize or where required or permitted by law. Information in our files may be seen by New York Life and Plan Administrator employees, but only on a "need to know" basis in considering your request. Upon receipt of all requested information, we will make a determination as to whether your request for insurance can be approved.

If we cannot provide the coverage you requested, we will tell you why. If you feel our information is inaccurate, you will be given a chance to correct or complete the information in our files. Upon written request to New York Life or MIB, you will be provided with non-medical information. Generally, medical information will be given either directly to the proposed insured or to a medical professional designated by the proposed insured. Your request is handled in accordance with the Federal Fair Credit Reporting Act procedures. If you question the accuracy of the information provided by MIB, you may contact MIB and seek a correction. MIB's information office is: MIB, Inc., 50 Braintree Hill Park, Suite 400, Braintree, MA 02184-8734, telephone 866-692-6901 (TTY 866 346-3642). For Canadian residents, the address is: MIB Information Office, 330 University Avenue, Suite 501, Toronto, Ontario, Canada M5G 1R7, telephone 416-597-0590. Information for consumers about MIB may be obtained on its website at

For NM Residents: PROTECTED PERSONS1 have a right of access to certain CONFIDENTIAL ABUSE INFORMATION2 we maintain in our files and they may choose to receive such information directly. You have the right to register as a PROTECTED PERSON by sending a signed request to the Administrator at the address listed on the application. Please include your full name, date of birth and address.

1PROTECTED PERSON means a victim of domestic abuse: who has notified us that he/she is or has been a victim of domestic abuse; and who is an insured person or prospective insured person.

2CONFIDENTIAL ABUSE INFORMATION means information about: acts of domestic abuse or abuse status; the work or home address or telephone number of a victim of domestic abuse; or the status of an applicant or insured as family member, employer or associate of a victim of domestic abuse or a person with whom an applicant or insured is known to have a direct, close, personal, family or abuse-related relationship.

100691                                                                                                                                      New York Life Insurance Company
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Association Member Benefits Advisors
4050 NW 114th Street
Urbandale, Iowa 50322
 M-F 8a-5p PST
[email protected]