Recently, a group of some of New York’s top long term disability insurance lawyers and advocates gathered in Manhattan to sign an important document for the benefit of all employees who are covered for LTD benefits through an ERISA plan sponsored by their employer. This letter to the NY Insurance Superintendent Eric Dinallo requested that unfair "discretionary clauses" in insurance contracts be banned in New York, as they have been recently in New Jersey and California.
As previously reported in this blog, this follows the prior attempts to ban discretionary clauses under the Pataki administration. To date, it is unknown what the Spitzer administration’s position will be on this issue. However, it is hoped that the Superintendent Dinallo will join other progressive states in leveling the playing field for disablity claimants and stop unfair insurance company practices which deny legitimate long term disability claims. We will keep you updated when we receive a response from Superintendent Dinallo.