Benefits-for-Life Provisions Deemed Permissible (under old law)
First Insurance Co. v. Dayoan (ICA November 18, 2010) Background. Dayoan was injured in a motor vehicle accident in 1998. He was 60 years old. He had an insurance policy with First Insurance. The accident left Dayoan disabled and unable to work as a kitchen helper and dishwasher at Jimmy's Drive Inn in Hilo as well as growing produce for additional income. Dayoan applied for benefits pursuant to his insurance policy. First insurance paid Dayoan $1,500 a month. The policy stated that wage loss benefits could continue "only if the treating health care provider determines the 'insured' is disabled from employment to which the 'insured' is suited by education, training and experience." The wage loss benefits would expire upon Dayon's death. Dayoan's inability to work is not in dispute. After paying wage loss benefits for about seven years, First Insurance brought a declaratory judgment action. The action sought the circuit cou...