Reno ERISA Attorneys

ERISA law sets expectations for long term disability insurance companies to meet when managing a policyholder’s claim or application. When insurance companies do not meet those expectations, either through intentional actions or genuine negligence, it could constitute an ERISA violation.

Four common examples of ERISA violations are:

• Wrongful benefits denial: The easiest way for an insurer to try to avoid paying an LTD claimant a fair payout is by denying their claim entirely, regardless of its validity. Intentionally denying benefits that are deserved is an obvious issue, but it often requires an attorney’s intervention to set things right.
• Lost benefits: A long term disability claim’s benefits might be dependent on financial accounts that must be carefully managed to ensure there will always be LTD benefits available to valid claimants. Losing benefits due to the negligent mismanagement of such an account can be an ERISA violation.
• Breach of fiduciary duty: Account managers can breach their fiduciary duties in other ways that negatively impact your LTD benefits. A fiduciary duty is essentially one party’s written or assumed responsibility to always do what is best for the party they represent or manage.
• Wrongful termination: In some situations, an employer will fire an employee without due cause in an attempt to prevent them from getting LTD benefits through the insurance provided through their employment. Employers may be tempted to take this unsavory action because it can lower their monthly insurance premiums.