As we mentioned in our blog post on common errors and deficiencies found in the OCF-2 form, there are ways to make the form work better for you.
By requesting not only the correct supporting documentation, but asking the right questions, as well, you can ensure a correct Income Replacement Benefit (IRB) calculation every time.
Supporting documents
Let’s start with the documentation. Why are these so important?
As noted in our previous blog post, the people completing the OCF-2, don’t always have the requisite knowledge to correctly and completely provide answers to the questions they are asked. As such, supporting documentation helps to support the amounts noted on the OCF-2, and ensure it has been completed correctly.
This is especially important if an insured was unemployed at the date of loss, and to determine the eligibility of an insured it may be necessary to determine if they had been employed for 26 of the 52-weeks prior to the accident.
So what type of documentation can help? Let’s start with the basics:
While there are endless documents that could be requested, and these will vary from business to business, the four listed above should provide a complete picture, and help identify any gaps in information.
OCF-2 support form
The biggest gap that usually exists with the OCF-2, is the absence of employer paid benefit details. While some pay stubs may provide details of this, others will not, and you will still have to go back to the employer for this information. After consistently dealing with this deficiency, ADS set about creating a support form. You can find a copy here. We would also be pleased to provide a custom version for your company – send us an email at answers@adsforensics.com and we can tailor one specifically for your firm.
This supplementary form outlines several categories of additional income sources that may have been missed on the OCF-2, including employer paid benefits, vacation, bonuses, commissions, and sick pay. By combining this alongside the OCF-2, you can get a better gauge of what exactly an insured was paid during the course of their employment, both before and after the accident.
Conclusion
By requesting both the OCF-2 support form be completed and the basic documentation above be provided, you can more easily and cost effectively ensure an insured’s IRB calculation is correct.
The team at ADS Forensics is always available to provide guidance on issues you confront in regard to the OCF-2 and supporting documentation. Don’t hesitate to contact us with questions at 1-800-380-7908 ext ASK (275) or at answers@adsforensics.com.