Disability Insurance Industry News

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In Thomas v. Prudential Insurance Co. of America, et al., plaintiff Thomas learned the hard way the importance of filing an ERISA lawsuit within the time frames established by the employer-sponsored disability benefits plan. Without even referencing the medical condition upon which Thomas based her claim for long-term disability benefits, a federal district court in Louisiana dismissed her lawsuit due to her failure to file it on time.
Continue Reading ERISA Disability Benefit Lawsuit Against Prudential Dismissed for Failure to File Timely

A test designed to expose less than legitimate personal injury suits is being used more often by disability insurance companies. The test, known as the “fake bad scale” (“FBS”), is being used as a tool to discredit disability claimants insurance benefits.
Continue Reading Controversial “Fake Bad Scale” used by Disability Insurers to deny claims

Dearborn National, a multi-billion dollar insurance company that sells long term disability insurance products, recently hired a law firm to prohibit Disability Insurance Attorneys Dell & Schaefer from displaying the Dearborn National on a webpage that discusses the company. Dearborn National was concerned that consumers may believe “that there is a connection, affiliation, endorsement or…

California Governor Arnold Schwarzenegger has the opportunity to sign California Assembly Bill 1868 (“AB 1868″) and put an end to unreasonable discretionary clauses contained in ERISA governed long term disability policies. Discretionary clauses provides authority to the insurer to determine eligibility for benefits or coverage, interpret the terms of the policy, or interpret the terms…

Verla Hancock participated in a group benefit plan sponsored by her employer, Intermountain Healthcare. The plan’s claim fiduciary was Metropolitan Life Insurance Co. (MetLife). Under the plan, Verla obtained basic life insurance, supplemental life insurance and accidental death and dismemberment coverage (AD & D).

The plan stipulated that in order to benefit from the AD…

Ronnie Hogan sued Provident Life & Accident Insurance Company (Provident) and Unum Group Corp. (Unum) asserting claims under Florida law that the insurance companies had failed to attempt in good faith to settle his claim. Hogan also accused the insurance companies of making misrepresentations that would have made a settlement less favorable for him. He…

In 1989, The US Supreme Court declared that if ERISA plans contain language giving plan fiduciaries discretion to interpret the terms of the plans and to make benefit determinations, courts will generally yield to that discretion.
Continue Reading Insurance Industry Loses Lawsuit Challenging the Abolishment of Discretionary Clauses In ERISA Long-Term Disability Policies