California Bans Discretionary Clauses in Disability Insurance Policies

[The Straight Story]

California Bans Discretionary Clauses in Disability Insurance Policies

A new law in California bans "discretionary clauses" in disability and life insurance policies. The clauses allow insurers to decide on their own if an insured is disabled, despite doctors' opinions.

November 11, 2011 /24-7PressRelease/ -- Imagine this situation: You're the victim of an unexpected accident or illness and all of a sudden you're not well enough to return to work. Thankfully, you've been carrying disability insurance coverage for years, so you could protect yourself and your family in case something like this happened. You go see a series of doctors and specialists who investigate your ailment and document that you are unable to return to work.

You are finally able to rest easy, knowing now that your disability has been medically proven you will be able to rely on your disability coverage and continue to support your family. Then, out of nowhere, your insurance company invokes its "discretion" to disagree with medical evidence and decide that you are not disabled. It denies your claim, leaving you with nothing.

This sounds like a terribly unfair situation. However, until recently, this sort of disability insurance claims practice was entirely legal -- and unfortunately all too common -- in the state of California.

Law Protects Insured from Unreasonable Claim Denials

http://world.einnews.com/247pr/246029

[saras]

1. Who the fuck would unrec this?

[Le Taz Hot]

2. K & R