New York Withdraws Opinion on Discretionary Clauses in ERISA Disability Income Insurance Claims
Friday, August 11, 2006In April of this year, New York joined the growing list of states banning discretionary clauses in ERISA long term disability policies, much to the benefit of disabled workers. Unfortunately, the New York State Insurance Department recently rescinded it’s prior advisory letter in favor of proceeding with formal rule making in the future. While it is clear that New York still feels that "discretionary clauses" are unfair to ERISA long term disability plan participants, this newest circular letter does subject current disability claimants to uncertainty in the near future. New York Insurance Department Circular Letter # 8, dated 3/27/06, required long term disability insurance […]
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