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Dual Role of Insurers Creates Conflict Requiring Totality of the Circumstances Review |
July 7, 2008
Previously published on June 20, 2008
In an important case for employers sponsoring ERISA-covered plans, such as a disability plan, where an insurer also acts as an administrator adjudicating claims, the U.S. Supreme Court ("Court") announced its 6-3 decision in Metropolitan Life Insurance Co. v. Glenn, U.S. No. 06-923, on June 19, 2008, and held that benefit determinations ("Determinations") by such insurers continue to be subject to review using the deferential standard established in Firestone Tire & Rubber Co. v. Bruch , 49 U.S. 101,115 (1989), but hold that the conflict of interest must be taken into account in such Determinations.
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The views expressed in this article are solely the views of the author and not Martindale-Hubbell. This article is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance. |
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