The Future of Discretionary Clauses in California Life and Disability Insurance Agreements

By McDermott Will & Emery on May 23, 2017

Posted In Employee Benefits, Health and Welfare Plans

On May 11, 2017, the United States Court of Appeals for the Ninth Circuit reversed a district court ruling, and upheld a California law that invalidates a plan provision that assigns the final determination on benefit payout determinations to an insurer. How will this impact the future of discretionary clauses in California life and disability insurance agreements?

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Tags: California Insurance Code, de novo standard, Employee Retirement Income Security Act (ERISA), Kentucky Association of Health Plans v. Miller, Rush Prudential HMO Inc. v. Moran, Talana Orzechowski v. Boeing Co. Non-Union LTD Plan, U.S. Court of Appeals for the Ninth Circuit