Common use of Active Employee or Retired or Laid-off Employee Clause in Contracts

Active Employee or Retired or Laid-off Employee. The Plan that covers the Member as an active employee is the Primary Plan. The Plan covering that same Member as a retired or laid-off employee is the Secondary Plan. The same would hold true if the Member is a Dependent of an employee covered by the active, retired or laid-off employee. If the other Plan does not have this rule, and as a result, the Plans do not agree on the order of benefits, this rule is ignored. This rule does not apply if the “Non-Dependent or Dependent “rule can determine the order of benefits.

Active Employee or Retired or Laid-off Employee. The Plan plan that covers the Member a person as an active employee, that is, an employee who is neither laid off nor retired, (or is a Dependent of such employee) is the Primary Planprimary plan. The Plan plan covering that same Member person as a retired or laid-off employee (and the Dependent of such employee) is the Secondary Plan. The same would hold true if the Member is a Dependent of an employee covered by the active, retired or laid-off employeesecondary plan. If the other Plan plan does not have this rule, and as a result, the Plans plans do not agree on the order of benefits, this rule is ignored. This rule does not apply if the “section Non-Dependent or Dependent “rule can determine the order of benefits.