Federal court rules on disability insurance interest claim. (Court Decisions).(Helen Dunnigan, et al. vs. Metropolitan Life Insurance Co.)(Brief Article)

National Underwriter Life & Health-Financial Services Edition, January, 2002 by Bell, Allison

The 2nd Circuit Court of Appeals says members of employee benefit plans may be able to collect interest on unreasonably late benefits payments from disability insurers and other benefits providers.

The U.S. Supreme Court and other courts have usually held that Section 502(a)(3) of the Employee Retirement Income Security Act of 1974 prohibits plan members from suing in federal court for cash payments other than those specifically required by the terms of the plan contract.

But a three-judge 2nd Circuit panel has ruled in favor of the plaintiff in Helen Dunnigan, et al. vs. Metropolitan Live Insurance Company, a suit filed by a former auditor who says Metropolitan Life, New York, ought to pay her interest on back benefits payments it awarded her after...

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