SEC. 2. PROTECTIONS FOR APPLICANTS FOR DISABILITY 
INSURANCE BENEFITS OR OTHER BENEFITS 
BASED ON DISABILITY AGAINST INAPPRO-
PRIATE OFFSETS AGAINST BENEFITS UNDER 
PRIVATE DISABILITY INSURANCE COVERAGE. 
(a) IN GENERAL.—Section 221 of the Social Security 
Act (42 U.S.C. 421) is amended by adding at the end the 
following new subsection: 
‘‘(n)(1) At the time at which an insurance issuer 
takes any action in connection with private disability in-
surance coverage provided by the issuer which constitutes 
a presumed entitlement benefit reduction, the issuer shall 
certify to the Commissioner, in such form and manner as 
may be prescribed by the Commissioner, that the issuer 
has determined that there is reasonable cause to assume 
that the individual is under a disability (as defined in sec-
tion 223(d)) and is, or upon application would be, entitled 
to disability insurance benefits under section 223, or 
child’s, widow’s, or widower’s insurance benefits under 
section 202 based on disability. Such certification shall in-
clude a statement (meeting such requirements as the Com-
missioner may prescribe) in support of the issuer’s deter-
mination. 
‘‘(2) For purposes of this subsection, an action taken 
in connection with private disability insurance coverage 
constitutes a presumed entitlement benefit reduction to 
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the extent that such action has the effect of reducing the 
benefits under such coverage of any individual covered 
under such coverage by reason of a failure by such indi-
vidual— 
‘‘(A) to apply for disability insurance benefits 
under section 223, or child’s, widow’s, or widower’s 
insurance benefits under section 202 based on dis-
ability, or 
‘‘(B) to timely request a hearing under sub-
section (d) (or an administrative review prior to such 
a hearing) with respect to such benefits. 
‘‘(3) The Commissioner shall include in any applica-
tion form for applying for benefits under section 223, or 
child’s, widow’s, or widower’s insurance benefits under 
section 202 based on disability, and any application form 
for applying for a hearing under subsection (d) (or admin-
istrative review prior to such a hearing) relating to such 
benefits, a question regarding whether the applicant has 
been requested by an insurance issuer offering private dis-
ability insurance coverage, or any other person on behalf 
of such issuer, to file the application. 
‘‘(4) For purposes of this subsection— 
‘‘(A) The term ‘private disability insurance cov-
erage’ means disability insurance coverage offered in 
the private sector by an insurance issuer. 
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‘‘(B) The term ‘disability insurance coverage’ 
means cash benefits provided to individuals in the 
event of disability or physical or mental impairment 
(as defined in the terms of the policy under which 
such coverage is provided) under a policy, certificate, 
or contract offered by an insurance issuer. 
‘‘(C) The term ‘insurance issuer’ means an in-
surance company, insurance service, or insurance or-
ganization which is licensed to engage in the busi-
ness of insurance in a State and which is subject to 
State law which regulates insurance.’’. 
(b) PENALTIES.—Section 208(a) of such Act (42 
U.S.C. 408(a)) is amended by inserting ‘‘or’’ at the end 
of paragraph (8), and by inserting after paragraph (8) the 
following new paragraph: 
‘‘(9) willfully, knowingly, and with intent to de-
ceive the Commissioner of Social Security— 
‘‘(A) furnishes or causes to be furnished 
false information in a certification required 
under section 221(n)(1); or 
‘‘(B) fails to timely provide such certifi-
cation;’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to private disability 
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insurance coverage for periods beginning on or after Janu-
ary 1, 2011. 
Æ 
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