[MRM]

I'm not going to get into a debate about whether insurance companies generall pay or deny meritorious claims. That is a different issue and has nothing to do with the question above. Besides, this issue is a work comp claim in a specific state, not a disability claim in Canada. Very different creatures, both very complex for different reasons. But if oyu think it over, the insurer can't make you go through an operation to get off profession-specific LTD unless that right is written into the policy, and if it is, you're getting the coverage you paid for. Other policies with higher premiums wouldn't have that clause. That's why you buy insurance through a broker like LJW. They make sure your expectations line up with what you purchase. FWIW, what you described is unlikely to happen in the US. I'm pretty sure ERISA wouldn't alow it.

Anyway, what Gaijin said is almost certainly correct. It looks like the AIG policy has to cover all work-related injuries, contract employees or direct employees. That obligation probably is imposed by the state, so if AIG covers anything it has to cover everything. They're just adjusting their premiums to reflect that they carry comp liability for two otherwise uninsured drivers. That is a lot of liability.

Now if the drivers can get other insurance that will be primary to AIG's coverage, then AIG will probably reduce its coverage and premiums accordingly, but right now, they're on the hook for five drivers, regardless of whether the drivers want the coverage because the state tells them they have to be, so they're going to charge premiums for five drivers.