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Insurance

Oct. 19, 2010

Disability Insurance Is Not a Widget

Courts have turned the act governing employer-provided insurance into a shield for insurers, leaving claimants with few options for redress. By Rebecca Grey of Pillsbury & Levinson.

It is a rude surprise to many that half a century of judicial precedent establishing California's bad faith remedies does not apply to most insurance disputes. Insurance provided through a person's employer, with some notable exceptions, is generally governed by the Employee Retirement Income Security Act of 1974 (ERISA), which has been interpreted by the courts to pre-empt nearly all state law rights and remedies.

Congress enacted ERISA in 1974 t...

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