Litigation
Nov. 3, 2011
Law bars discretionary clauses in disability claims
A new state law bars insurance companies from using their discretion to deny disability claims.
By Amy Yarbrough Daily Journal Staff Writer As it stands, an insurance company can deny a policyholder's claim for disability benefits even if the insured's own doctor believes he or she is disabled. Undoing that denial can be an uphill battle in court for plaintiffs' lawyers, who must show that the insurance company used its discretion in an "arbitrary and capricious" way. The ...
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