News & Analysis as of

Disability Insurance Insurance Contracts

Proskauer - Employee Benefits & Executive...

District Court Applies Texas Ban on Discretionary Clauses in Insurance Contracts

A federal district court in Louisiana upheld a Texas state law prohibiting insurers from granting themselves discretion to interpret benefit plans when deciding benefit claims. These so-called “discretionary clauses” are...more

McDermott Will & Emery

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

McDermott Will & Emery on

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...more

Seyfarth Shaw LLP

Grounding Deferential Review in California – No Preemption for Discretionary Clause Ban

Seyfarth Shaw LLP on

Seyfarth Synopsis: In a decision with wide ranging implications, the Ninth Circuit has ruled that a discretionary clause in an employer drafted plan document is subject to, and invalidated by, California’s insurance...more

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