Kantor & Kantor represented a claimant whose long-term disability benefits were denied under a Boeing-sponsored ERISA plan administered by Aetna. The denial placed the claimant’s income and financial stability at risk despite prior approval of benefits.
The plan defended the denial under a deferential standard of review based on discretionary language embedded in the policy. Kantor & Kantor challenged whether that discretionary clause was enforceable under California law.
The Ninth Circuit held that California Insurance Code § 10110.6 voided the plan’s discretionary clause and required de novo review of the denial. The ruling stripped insurers of deferential review in covered policies and materially changed how disability claims are litigated across California.
