Michigan Long Term Disability Insurance Lawyer Blog

Colorada recently passed a law banning the use of discretionary clauses in any Long Term Disability insurance policy. This ban also applies to group policies. Colorado's new law reflects the same policy decision of the Michigan Insurance Commissioner.

Banning these discretionary clauses, and requiring that a court review the claim on a “de novo” basis means that the court must perform its own review and decide whether the administrator’s decision was right or wrong, with absolutely no deference given. This will, in all likelihood, have a huge effect on the number of viable Long Term Disability claims in Colorado.

Thanks to Attorney Shawn McDermott for his blog on this subject.

Posted by Serafini, Michalowski, Derkacz | Permalink | Email This Post

Posted In: LTD Policy Issues

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On June 19 the Supreme Court issued its much anticipated decision in Metlife v Glenn regarding the conflict of interest created by a long term disability insurer who both determines whether an insured is eligible for benefits and pays benefits out of its own pockets.

Justice Breyer authored the majority opinion confirming that when a plan administrator both evaluates claims for benefits and pays those benefits a conflict of interest is created which requires the reviewing court to weigh that conflict as a factor in determining whether there was an abuse of discretion.

The majority opinion reaffirms the principles first identified in the Firestone decision. Any practitioners who were hoping this decision might change the landscape are sure to be dissapointed as the Court specfically recognized that it was not providing any detailed set of instructions on determining the effect of the insurer's conflict on its ultimate decision to deny benefits.

Interestingly, Justice Scalia in dissent claims that "Notwithstanding the Court's assurances to the contrary, that [the majorities combination of factors method of review] is nothing but de novo review in sheeps clothing."

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Posted In: ERISA

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Patrick Derkacz, an attorney and partner with the firm attended the 11th National Advanced Forum on Litigating Disability Insurance Claims which was held in Boston. The conference provided an opportunity to hear from industry insiders on the latest trends involving Long Term Disability Insurance Claims.

The three day conference included presentations from various respected advocates on a range of topics including developing discovery strategies to expand the record and an in-depth discussion about the pending Supreme Court opinion in Metlife v Glenn.

Counsel were able to share various litigation tips and strategies that have proven effective in an effort to increase the likelihood of a favorable outcome and increase the amount of each recovery.

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In a recent study by the University of Chicago School of Law, the Michigan Supreme Court was ranked dead last in Independence. The academic study determined that the justices on this court (including Taylor, Markman, Young and Corrigan) demonstrated the least ability of the hundreds of state supreme court judges to withstand partisan pressures.

The results of this study come as no surprise to attorneys actively practicing in Michigan. These justices have consistently ruled in favor of the insurance companies, the chamber of commerce and the corporations who fund their reelection campaigns. This Court has overturned more cases faster than any other court in memory.

Posted by Serafini, Michalowski, Derkacz | Permalink | Email This Post

Posted In: Other Stuff

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