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Insurer withdrew Boyd's coverage

Insurance Company to ascertain whether former managing director David Boyd was covered under the long term disability policy.

But she declined to let the representative of the insurance company know the real reason for her inquiries because she did not want to let on the extent of his sickness.

Lawyer Saul Froomkin levelled this assertion at Sonesta Beach Resort human resource manager Katherine Campbell Johnson yesterday.

Ms Johnson admitted that she called Colonial Insurance on June 6, 1996 and asked whether Mr. Boyd was covered under the hotel's disability policy.

Mr. Boyd, the former president and managing director of the Sonesta Beach Resort in Southampton, now resides in South Carolina.

He left his post due to chronic pain. He sued Colonial after it refused to provide him with disability insurance following his resignation.

Mr. Boyd's lawyer Jai Pachai, has said the case rests on the interpretation of a June 5, 1996 amendment clause to the hotel's insurance policy.

The court must decide he has said, whether or not this policy, in the court's interpretation, does or does not include an exclusion for pre-existing medical conditions.

If the court finds in Mr. Boyd's favour he will be entitled, according to Mr.

Pachai, to 66.6 percent of his basic monthly earnings.

Mr. Boyd, who testified earlier this week, said he insisted that he made it clear to Colonial that any insurance policy would have to cover everyone regardless of their medical history.

And he said that he was assured that Colonial could write a policy without regard to pre-existing medical conditions.

Mr. Boyd also testified that he told Colonial that he had a neurological problem which caused daily chronic pain and that he was concerned about long-term disability. He first noticed his illness in June, 1986.

Nonetheless, Mrs. Johnson said that when she called Colonial Insurance she was told that Mr. Boyd was covered under the long term disability plan.

However the next day she was told he was not covered and her request for the necessary forms to file a claim on Mr. Boyd's behalf, were met with some resistance. She eventually got the forms on June 19, 1996.

During cross examination, Mr. Froomkin asserted that a representative from Colonial had asked Mrs. Johnson why she was inquiring about Mr. Boyd's coverage.

Yet, Mr. Froomkin continued, she did not answer the question because she knew of his illness.

Mrs. Johnson denied that assertion and said that she was merely following through on a request for confirmation from the hotel's head office.

The case has been adjourned and will continue on a date yet to be fixed.