Business Services Industry
ADA DOESN'T REGULATE INSURANCE COVERAGE: COURT.(Americans with Disabilities Act; includes various insurance)(news)
Business Insurance, June, 1999
CHICAGO-The Americans with Disabilities Act does not regulate the content of insurance policies, a federal appeals court has ruled. In a case involving two defendants who have HIV, the virus that causes AIDS, the 7th U.S. Circuit Court of Appeals ruled last week that Mutual of Omaha Insurance Co.
could cap lifetime benefits for treatment of AIDS or AIDS-related conditions. The court examined two policies that had caps of $25,000 and $100,000 despite lifetime limits of $1 million for other conditions. Chief Judge Richard Posner, writing for the majority, likened insurance to any other product or commodity. Denying coverage to someone with AIDS would be discriminatory, he said, but an insurer has the right to craft specifics of the policy, regardless...
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