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Labor & Employment Law
: Ross' Employment Law BlogCert denied in ERISA preemption case
The US Supreme Court this morning denied certiorari in Standard Insurance Co v. Lindeen, leaving the 9th Circuit judgment unchanged.
The Montana insurance commissioner has a practice of disapproving any insurance contract containing a "discretionary clause." Typically, such clauses confer upon the insurer full discretion and authority to review claims for benefits and interpret the terms and provisions of its insurance plan. The commissioner denied Standard Insurance Co's application for approval of its proposed disability insurance forms which contained discretionary clauses, and Standard sued claiming that the subject is preempted by the Employee Retirement Income Security Act (ERISA).
The 9th Circuit held that the commissioner's practice of disapproving any insurance contract containing a discretionary clause is not preempted by ERISA.
Full post as published by Ross' Employment Law Blog on May 17, 2010 (boomark / email).
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