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Dual Role of Insurers Creates Conflict Requiring Totality of the Circumstances Review


by Baker & Hostetler LLP View Firm Credentials
Cleveland Office

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.


 

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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